Article 1 - A more positive image for Islamic nations

Some have argued that none of the world’s tensions are as profound or as far-reaching in their global consequences as the tension between the West and the Muslim world today.

However if one takes a closer look, there is enough tension even among Muslim countries to cause alarm. The vast array of ideological standpoints on religion has spilled over into the economic and social front effectively splitting the Muslim world.
There is a wide gulf between the haves in the Gulf states and the have-nots in Sub Saharan Africa. Poverty, high unemployment and poor sanitary conditions afflict large segments of the Muslim world. There is a huge investment in shining skyscrapers while shining talents are not given a proper education. These factors in turn have prevented Muslims from being as well connected to the rest of the world as they should be.

The World Islamic Economic Forum (WIEF) intends to change this not by focusing on the Muslim world as a religious entity or an ideological bloc but by focusing on economics and business.

We are not in the business of solving polemics, be it political or religious. The WIEF is in the business of business. We are a business gateway between the Muslim and non-Muslim world and provide a platform for business partnerships between the two. We want to share our knowledge from our various cultures and speak the common language of business. During the last WIEF in 2009 in Jakarta in 2009, a total of US$3.4 billion in business deals were signed between businessmen from countries who would never have had the opportunity to do so otherwise.

We staunchly believe that when people get together for business, they forget their political, religious and ideological differences because there is one compelling commonality that matters most before them – and that is the impetus to be peaceful and prosperous. That is what matters most.

The Muslim world wants to be seen as a strong, stable and independent entity wanting to get on with the job. By focusing on doing business and making money, away from politics and religion, we are creating a level of cooperation at a level not seen in recent times.

Intra-trade between the Organization of Islamic Countries (OIC) in 2003 was between 10-13% of total trade. In 2009 this figure increased to 16.7% and the OIC is working towards achieving a respectable 20% or close to US$250 billion by 2015. Many of the OIC economies are showing strong fundamental growth  potential and are increasingly becoming part of the global emerging markets. In addition institutions such as the Islamic Development Bank has been helping OIC countries build up their infrastructure and development apart from financing intra-OIC trade.

Islam can be a focal point that brings us together and this could be a rallying banner and a burning platform to organise and collaborate for the common good, especially within the context of doing business. Islam encourages development and prosperity, it is very much central to the religion itself. Islam sees everything as being connected so the act of producing and selling things that people need is a morally and religiously sound act. With more business activities comes more development, more prosperity and more wealth for everybody.

However just because we are Muslims, does not mean that we wish to be perceived as an exclusive group. We want to be known as an investment and trade bloc that everyone can engage with. Muslims are part of the globalised world where every aspect of one’s life, be it political, economic or cultural, is invariably interconnected to each other. By linking with any one of the attendees at the WIEF, you are tapping into a much bigger market. A market populated by 1.5 billion people worth more than a trillion dollars. It’s as simple as that.

While we acknowledge that dialogue is important, we advocate dialogues of action through business relationships. Business and trade are one of the best means for countries to be at peace with one another. Intricate economic links can bind both Muslim and non Muslim countries. The influence that economic cooperation and business partnerships can wield is enormous. We will be able to collaborate and do business with each other and the rest of the world for the common good of every citizen.

The Muslim world has much to offer away from traditional areas like fossil fuels and minerals. With the search underway for a new monetary system for the post-financial crisis era, Islamic banking is gaining ground as a beacon of financial stability.
The Islamic financial services industry valued has grown at an annual rate of 15% and reached a volume of $1 trillion in 2009, five times higher than in 2003. During the last decade, Islamic banking has transitioned into a dynamic, fast growing and competitive form of financial intermediation servicing the global community with participation from conventional global players.

The Muslim world has a young population. 65% of its population is below the age of 30. This in itself presents an array of opportunities for education service providers, the creative arts industry and the information technology sector.

Most Muslim countries have burgeoning SMEs who drive their economies. Their ability to generate growth and employment have not been recognized fully and they are badly in need of investments and management to bring them to the next level.

Undoubtedly negative perceptions of the Muslim world continue to exist but these have to be balanced by fact. And the fact is that a market of this magnitude and potential offers numerous opportunities.

The WIEF is here to facilitate access to these opportunities. While governments of Islamic countries needs to focus on peace and security, it is left to the private sector to power the economies of these countries. The future of the Muslim world lies in its economic agenda not its political or religious agenda. The WIEF is open to working with all parties to realize the economic agenda and jumpstart the economic resurgence that has long been waiting.

Article 2 – Building on the Strengths of Muslim Economies

One of the most pertinent economic issues facing the Muslim world today is the inequality of wealth amongst its members. The United Arab Emirates has a Gross Domestic Product by Purchasing Power Parity GDP (PPP) Per Capita of USD45,200. At the opposite end of the scale are countries like Somalia with a GDP (PPP) Per Capita of USD600. Some countries are blessed with an over abundance of oil while others are being torn apart by civil war.

With such disparities one would feel that it would be impossible for these different economies to sit at the same table. The WIEF would like to view this situation rather differently. Apart from sharing a common faith, all these countries share very similar characteristics which need to be looked at a deeper level.

An interesting characteristic is the relatively young population of many Muslim countries. An estimated 65% of its 1.5 billion citizens are below the age of 30. Because the young have new ideas and new energy, these numbers represent a huge catalyst for growth. Thus the WIEF has identified youth as one of the starting points to bring Muslim nations together. The overall wellbeing and strength of the Muslim world in the future lies in how well the young are educated and connected.

However, many governments have failed to nurture their younger citizens leading to a severe lack of skills among its workforce. While the use of the Internet and mobile communications has increased among the young, the level of education and skills has not. The youth know how to use these high tech gadgets but they are unable to design and develop them. There is an over dependence on foreign expertise, foreign imports and foreign labour. Everything has to be brought in, even human resources.

Education security is just as important as food, energy and water security. Without a comprehensive education and a highly-skilled and well-trained workforce, the Muslim world cannot realistically expect its position in the world to improve. Providing these future leaders with the skills, strengths and networks is crucial for them to be competent in the future. Higher education generates hope and opportunity, allowing young people to see their future unfold in a meaningful and productive way.  It is also timely that Muslim youth are involved and given responsibilities to tackle important issues facing the world at present such as climate change and sustainable development to give them a sense of ownership of the future.

The WIEF’s Young Leaders Network (WYN) brings together young leaders and change makers, professionals and entrepreneurs through its “Groom a Leader” Project which entails an internship and scholarship programme. Since its full-fledged inception just recently, two students, one from South Africa and another from Malaysia were granted scholarships to study at the University of Cambridge, UK and Multimedia University, Malaysia respectively through the WYN Scholarship Programme.

The WYN Internship Programme, one of the main attempts to take the internship experience in the Muslim world to a global level, entails providing the opportunity to young leaders in these countries to work for a period of 3 – 6 months WIEF’s various partner corporations which among them are reputable multinational corporations such as the Sime Darby Group, Al-Ghurair Group and Rio Tinto Alcan. In 2009, five students from Somalia, Nigeria, Indonesia, Sri Lanka and Pakistan benefited from the programme and were able to work and connect with professionals from a diverse range of cultures and backgrounds. The Programme aims to bring in more students and more partner corporations to join the fold from 2010 onwards.

Other initiatives which have been started to facilitate an exchange of ideas and transference of knowledge include the WIEF-UiTM International Centre, an initiative of the WIEF Education Trust (WET) which was established in 2007 in collaboration with University Teknology Mara (UiTM) in Malaysia.  One of its activities, the Global Discourse Series conducted in November 2009, brought together a panel of experts to discuss contemporary issues with university students who came from all over Malaysia. The WIEF believes these discussions bring a fresh perspective to knowledge transmission by bringing together opinion leaders and world experts to impart knowledge to people who matter and would benefit the most – the students and the academia at large - exactly those who are responsible to carve the intellectual fabric of society and bound to be leaders in the near future. When it gathers sufficient momentum, the WIEF aims to replicate this model to other universities and other centres of excellence. Under the WET, WIEF also plans to establish research collaborations between research institutes, universities and think tanks within the Muslim World in such crucial fields as biotechnology and human capital development.

Another interesting characteristic among Muslim nations is the large involvement of SMEs in their economies. In the United Arab Emirates for example, SMEs employ 62% of the labour force and contributes about 75% of the GDP of the State. In Lebanon they form more than 95% of the total enterprises and contribute roughly 90% of the jobs. In addition to providing job opportunities, SMEs in these countries play an important role in developing new products both for local consumption and for export.

These SMEs are not without their share of problems. They do not have easy access
to financial services because of the requirements that must be met to obtain
these loans. They are also governed by complex regulations governing their 
establishment and operation. The WIEF acts as a platform to bring together these SME business owners with the right people in the business chain such as the bankers, venture capitalists and potential partners to explore funding facilities and business development.

Many of these SMEs owe their growth to women who have contributed immensely to the economy of the Muslim world. In recognition of the contribution of women to the economy, the WIEF established the WIEF Businesswomen Network (WBN) to provide a networking platform for women entrepreneurs in the Muslim world in line with the goals of the global women empowerment agenda to elevate the status of women worldwide.

The WIEF sees its role as connecting and empowering women entrepreneurs worldwide through seminars and workshops so that they can share their expertise and skills, support and mentor each other and create worthwhile business relationships across different countries. An example of this was the WBN Women Entrepreneurs Workshop held from 17-29 January 2010 which brought together 28 participants from 13 countries.

At the WIEF, we choose to believe that our similarities are far greater than the differences that are purportedly dividing us. We prefer to build on these commonalities through the things that bring us together – our women and children, and the imperative of education that continues to sustain us as a civilisation. We may come from diverse countries but we are one world. I hope we will be able to see beyond our borders and focus on building bridges between the gaps that has kept us apart for so long.

Article 3 – Bridging the Gap Between the Muslim and Non Muslim World

Money makes the world go round regardless of ideology or religion. People will seek out opportunities and do business with anyone if there is money to be made. That’s a simple fact of life. The ethos of the WIEF which is building bridges through business encapsulates this fact. We want the global community, both Muslim and non Muslim, to come together through business.

In the beginning we liked to consider ourselves to be the “the economic face of the OIC.” This was somewhat restricted to business people in the Muslim countries. We’ve come a long way since then because the forum today attracts people from all over the world under one umbrella, irrespective of religious origin. The world is not compartmentalized and no one can act on their own and global business means interconnectivity in the true sense of the word.

There is nothing stopping the non Muslim world from doing business with the Muslim world. No doubt there is a lot of historical baggage and preconceived notions but these barriers are being replaced by bridges. A market of 1.5 billion people, 65% of  whom are below the age of 30 cannot be ignored. Also the solutions of yesterday do not always solve the problems of today or tomorrow and people are searching for alternatives.

Take for instance Islamic banking and finance. Initially even the general financial community was wondering what it was all about. Then the recent financial crisis happened and now bankers are now embracing it in droves. Everybody wants to be the center of Islamic finance. London wants to be the centre, Tokyo wants to be the centre, Singapore wants to be the centre, Hong Kong wants to be centre.

I joke about this but it seems that even the most unIslamic people want to involve themselves in Islamic banking. I can only imagine that the whole world is literally looking for a system that would be better, if not the best, that could cope with problems related to the experiences that the world had gained from the misdeeds. And they realize that Islamic banking  which embodies the universal principles of ethical finance and socially responsible investment has inbuilt mechanisms to protects itself from extreme shocks. The Islamic financial services industry with the participation from conventional players is now competing to service the global community. No one had to push Islamic banking and finance down anyone’s throat. It took a long time for people to find out about it but eventually they did!

Apart from Islamic finance’s role in contributing to global financial stability it also has the potential to support overall global economic growth. Islamic finance involving financial flows between the Muslim and non Muslim world has revived and revitalized economic ties that generate mutually reinforcing growth prospects.

Similarly bridges are being built between Muslim and non Muslim countries in food security.  Much of the Middle East is dessert and cannot grow food. So, many of the countries there have invested in countries with vast amount of land and the agriculture industry like Australia. This partnership has guaranteed food security for many communities in that part of the world. . We see this as a compliment and as an example of partnerships that happen because of business regardless of religious differences.

Such partnerships have spurred the growth of the halal food industry. There are 18 halal certifying bodies in Australia alone! Halal meat is becoming commonplace in most big cities there. Because of the strict controls on animal husbandry practices and the quality of quality of food production, halal food has gained acceptance not only among Muslims but non Muslims as well. What happened with mad cow disease for example was a horrible thing. This would never have happened in the halal food industry. We do not  get involved in genetically modified animals or cloning which is already being opposed by many interest groups. In time to come we foresee more non Muslims choosing halal food and more non Muslims entering the halal food business because of its more conservative approach in producing the food that we consume.

Response to the WIEF has been overwhelming. Over the years we have seen the numbers grow from 600 for the 1st WIFE to 1700 in Jakarta last year. We are expecting 2000 in Kuala Lumpur this year. We say this because in 2010 we saw a growing interest in the forum from a wider circle. British companies reacted positively to the WIEF hosted gathering in London in early January 2010 with the theme ‘Europe’s Gateway to Business in the Muslim World’. In that same month road shows in the Middle East and Africa attracted business people from Abu Dhabi, Manama, Doha, Nairobi, Johannesburg and Cape Town who were keen on exploring the WIEF as a gateway to business opportunities in the emerging markets of the Muslim World.

At the 6th WIEF, a stellar list of leaders and speakers will be touching on solutions to providing clean water, managing climate change and educating the masses. These are issues that affect the whole world.

So you see there is this realization to look beyond the Muslim or non Muslim label. The WIEF is not going to push any agenda down anyone’s throat. We are simply letting the world know about the opportunities that can be found within the Muslim world, exchanging knowledge on solutions to problems affecting the world and providing the business community with alternatives to saturated and mature markets.