The Malaysian monarch, Al-Wathiqu Billah Tuanku Mizan Zainal Abidin who is officially known as Yang di-Pertuan Agong and who is also the Sultan of Terengganu, has bestowed royal patronage on the award initiative launched in June 2010 by the Malaysia International Islamic Financial Centre (MIFC) and the Securities Commission Malaysia (SC) which aims at honoring "outstanding contribution of an exceptional individual in Islamic finance".
The Malaysian monarch, Al-Wathiqu Billah Tuanku Mizan Zainal Abidin who is officially known as Yang di-Pertuan Agong and who is also the Sultan of Terengganu, has bestowed royal patronage on the award initiative launched in June 2010 by the Malaysia International Islamic Financial Centre (MIFC) and the Securities Commission Malaysia (SC) which aims at honoring "outstanding contribution of an exceptional individual in Islamic finance".
Upon the recommendation of the Malaysian government, the Malaysian monarch has given his consent for the award to be named "The Royal Award for Islamic Finance", which will provide prestige to the award.
Awards in the Islamic finance industry are unfortunately in a chaotic state, with even some of the so-called more established ones lacking in transparency in the nomination, selection and methodology process. There is no award currently serving the global Islamic financial industry which is truly independent and bereft of any commercial, advertorial and marketing influence. The "money-for-awards" culture is even more entrenched in Islamic finance, with scant regard to ethics. It is as if Islamic banks and bankers are screaming to be recognized, and they would go to some lengths to "buy" awards irrespective of the embarrassing situation sometimes of a mismatch between the award recipient and the category for the award.
Even the Islamic Development Bank (IDB) prize for Islamic economics and for Islamic banking, which are given alternatively, has its flaws with the selection process seriously lacking transparency and operating more like an "old-boy network".
As such, The Royal Award for Islamic Finance from Malaysia should be a refreshing new initiative. But whether it will live up to the expectations raised is still early to say. There seems to be an element of rushing into things, for why announce the award under one name in June 2010 only to be changed in the next month following the royal endorsement. The proper methodology would have been to have the royal endorsement first and then for the announcement to follow. Similarly, the time line for nominations was a mere month, which is far too short for serious deliberations and searches for the individuals of excellence. Nominations request for the IDB Prize, for instance, are announced a year in advance.
Nevertheless, this is the first time that a major recognized financial center has initiated an Award of Excellence in the Islamic finance space. This is unusual because there may be conflicts of interest issues despite the presence of an independent international jury. It may also further disqualify deserving potential recipients from the promoters or from the market of the domicile of the promoters.
Zeti Akhtar Aziz, governor of Bank Negara Malaysia and chairman of the MIFC executive committee stressed in Kuala Lumpur following the royal endorsement, "We are honored to be bestowed the royal recognition for the award on its inception. Islamic finance, inspired by universal ethical principles and driven by the real value propositions that it contributes to the economy that is appreciated by all, has become one of the fastest growing segments in international finance. It is timely for Malaysia to recognize individuals who have contributed toward shaping the global Islamic finance."
The Yang di-Pertuan Agong of Malaysia will present the Award to the winner at a gala dinner, to be held on Oct. 25 in Kuala Lumpur.
A special taskforce, headed by Zarinah Anwar, the chairman of SC, was established to spearhead the implementation of the award. "We hope in time this award will be regarded as a global benchmark in identifying the exceptional individuals who have inspired the development of Islamic finance worldwide," added Anwar.
In a statement, the MIFC explained that unlike the commercial award in the Islamic finance industry that are based on deals, this award is unique as it focuses on the individuals' record of achievement and outstanding contribution toward the development and advancement of Islamic finance globally.
An independent international jury, chaired by the former Malaysian Deputy Prime Minister and Chairman of the World Islamic Economic Forum Foundation Musa Hitam, will select the deserving individual. The 7-member jury comprises: Tun Musa Hitam; Tun Abdul Hamid Mohamad, former chief justice of the federal court of Malaysia and member of the Shariah Advisory Council (SAC) of BNM and SC; Professor Volker Nienhaus, former President of University of Marburg, Germany; Professor Abbas Mirakhor, former executive director of the IMF and Holder of the first INCEIF chair in Islamic finance (2010); Mohamed Ali Elgari, professor of Islamic Economics at King Abdul Aziz University, Saudi Arabia; A. Riawan Amin, chairman of the Indonesian Association of Islamic Banks; Yahia Abdul-Rahman, Founder, chairman and CEO of LARIBA Bank of Whittier, USA.
The MIFC initiative in July also unveiled the award's logo, which is in the shape of 5 diamonds. The diamonds, according to the MIFC, represent the five pillars of Islam as well as the principles of Islamic finance which are: good governance, transparency, fairness, faith and risk-sharing. Nominations for the award closed on July 15 and the winner will be announced on Oct. 25.
By Mushtak Parker
© Arab News 2010
