Problems faced by fresh graduates of Islamic Finance

by Daniela Olivier, 06.02.2011

More and more institutions around the world are offering degree programs and diplomas in Islamic Finance and banking. This is regarded to be a good sign, showing that the sector is growing and that there is big demand in well educated and trained individuals. However the medal has two sides: Every year more and more students are graduating and also it seems that Islamic banks are growing globally. However, we don’t see fresh graduates entering the job market yet. There are some, but not too many, job openings in different fields of Islamic Finance. Nevertheless most times banks look for more senior employees with at least 5 years of work experience, preferably in the Islamic Finance and banking sector. Another major issue which makes it hard for fresh graduates entering jobs is the spreading nationalization in many countries. For example in the United Arab Emirates, certain jobs are only open for Emirati nationals. In the Kingdom of Saudi Arabia and Malaysia people with Saudi or Malaysian (Bumiputera) background are encouraged to apply for the positions available. The Islamic Finance markets in Europe still need to develop and currently are only existent in the United Kingdom. One therefore asks where all the fresh graduates should work and be able to gain experience. It is clear that Universities are also institutions which want to generate money. There are currently no quotas for Islamic banking degree courses as for example we have for medicine or other overrun disciplines like psychology and business administration.[1] The INCEIF University in Kuala Lumpur Malaysia is providing their students the ability to get internships with the Islamic banks operating there.[2] This is a first step to provide students with a practical insight into the field. Nevertheless to provide the graduates with the ability to join an Islamic bank and learn about the practical side from scratch