Following the recent collapse of some traditional Western banking systems and institutions, many of the world’s governments are seeking alternative financial models.
Due to the increasing need for Muslims, representing one-fifth of the world’s population, to find Islamically accepted financial products, Shari’a-compliant banking is fast becoming a popular phenomenon. To reflect this change, the Glamorgan Business School has introduced an MSc in Islamic Banking and Finance for the first time this year.
Many countries, including the UK, are changing legislation to embrace this radically different model of finance and banking.
Unlike typically Western models of banking, Islamic financial systems prohibit the payment and receipt of interest; instead funds are employed in achieving an agreed goal that is of benefit to the wider society, in accordance with Islamic principles.
The overall aim of the bank is to work in partnership to achieve a shared objective that is of benefit to all members of society, and not simply to maximise profit by charging interest on interest.
Dr Atsede Woldie of the Glamorgan Business School said, “The economies of the Muslim world are growing rapidly and in particular the oil-rich states of the Arab Middle East.
The surge of Islamic hedge funds, the booming trade in Sukuk (Islamic bonds), retail and corporate lines of Islamic credit and derivatives as well as mortgages, auto financing, consumer finance, along with Islamic credit/charge/debit cards across the world have revealed a lack of experts trained in Islamic financial products and systems.
“This course will provide students with the knowledge and experience needed to fully prepare them for a job in Islamic finance.”
