by Lynette Khoo

WITH an estimated US$1.3 trillion of global Islamic finance assets waiting to be tapped, educating financial professionals on Islamic finance has become paramount.

To plug the knowledge gaps in Islamic finance, the Chartered Institute of Management Accountants (CIMA) is offering a global qualification in Islamic finance to industry professionals - the first such professional certification to be offered in Singapore.

This self-study programme is jointly developed by the Kuala Lumpur-based International Institute of Islamic Finance (IIIF), which is led by chief executive Mohd Daud Bakar, a member of both the Advisory Council of the Central Bank of Malaysia and the Securities Commission of Malaysia.

The ballooning value of petrodollars in Middle Eastern countries that are benefiting from surging oil prices has fuelled the demand for Islamic finance products, Dr Daud said at a press briefing yesterday.

Recently, international banks such as HSBC and Deutsche Bank have launched Syariah-compliant divisions, and leading exchanges such as London and New York have listed sukuks or Islamic bonds.

Dr Daud noted that Singapore, Hong Kong, Malaysia and Indonesia can be conduits for these hot petrodollars. Singapore can leverage on its comprehensive infrastructure platforms to support various pass-through investments, he said.

'If we produce more qualified professionals, the industry will grow faster,' he added.

Before making its way here to Singapore, the 'CIMA Certificate in Islamic Finance' was officially launched in December 2007 in the UK and Bahrain, followed by Malaysia in April this year.

There are currently more than 100 students worldwide under this online learning programme that takes about two to six months. Its study modules and learning materials have been authored by Dr Daud, together with selected world scholars, advisers and other industry practitioners.

The Monetary Authority of Singapore said recently that the Islamic finance industry, which is growing at an estimated 15-20 per cent annually, needs the participation of more players and end-investors, and the availability of a wider range of products to advance to the next stage of development.

So far, Singapore has attracted Kuwait Finance House to set up a Singapore office last November to focus on investment management activities in Asia.

DBS Group Holdings, Singapore's biggest bank, last year set up Islamic Bank of Asia, Singapore's first Islamic bank. Japan's Daiwa Asset Management listed its first Syariah-compliant exchange-traded fund on the Singapore Exchange in May this year.

CIMA chief executive Charles Tilley said that CIMA's certification programme will assist employers in Singapore and other major financial centres worldwide to professionally equip their employees in managing Islamic financial products.

So far, CIMA has entered into a global partnership with HSBC Amanah to promote and develop the Islamic finance sector via education and professional qualification.

'For Islamic finance to be successful, we need to have qualified people to undertake the work,' Mr Tilley said.

CIMA and IIIF are looking at taking this foundational course to the next level with a new programme on structuring Islamic finance products.

This article was first published in The Business Times on July 19, 2008.