Set course
Islamic management, banking and finance
Miles Brignall
Saturday July 3, 2004
The Guardian
I know what you're thinking. How does Islamic banking and finance
differ from its conventional western equivalent, and why does it
need a postgrad course devoted to it? The answer is primarily down
to one thing - the use of interest. Islamic banks and other financial
institutions are not allowed to charge interest as part of Muslim
law. As a result they have to find other ways of offering loans
that allow them to make a return while conforming to the strict
rules that govern such businesses.
As you might imagine this is not a big area of postgrad study in
the UK and, in fact, there is just one course on offer in the UK,
at the Markfield Institute of Higher Education in Leicestershire.
It is offered in conjunction with the nearby Loughborough University
which accredits its courses in this area.
Markfield actually offers three MAs in Islamic related studies
and has been offering its finance course for three years. According
to Humayun Dar of Lougborough University, the course was left to
fill the gap that was created when a similar masters at his own
university and another at Durham recently closed.
You may be surprised to learn that you do not need to be a Muslim
or to speak Arabic to attend the course, but it is an advantage
if you do. Several non-Muslims have attended the course in the past,
and while most of Markfield's students come from abroad, UK residents
are now starting to make more appearances at enrolment time.
So what will you learn? In many ways it follows a fairly standard
path - students learn research methodology and it is modular in
structure. The way in which it differs from other finance courses
are the subjects covered during those modules. In the absence of
interest charges Islamic finance houses have come up with a range
of products to replace it. Some are as simple as buying the asset
on behalf of the person applying the loan, and applying a service
charge. Others are more sophisticated.
Humayun says most students tend to come from a finance-related
first degree and suggests that the job prospects are good, as it
is a growing sector.
"Lots of students return to the Middle East, and that's where
the majority of jobs are still, but UK institutions are increasingly
looking to expand in this area, and the demand for suitably qualified
staff is only likely to grow," he says. There are now officially
1.8m Muslims in the UK (it could be as high as 2.5m) and while a
few years ago there was just one bank offering specialist Islamic
mortgages, now there are close to ten.
The fees for the course are £5,900, and there are still places
starting next September. One other option for those who want to
study this subject in the UK is to do one of the standard finance
courses that offers a module on Islamic finance - the course operated
by SOAS in London is probably the best-known provider of such a
course.
miles.brignall@tiscali.fr
Courtesy: The Guardian Newspaper.
http://jobsadvice.guardian.co.uk/rise/story/0,14371,1252807,00.html
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