DISCOVER NEW PERSPECTIVES
DISCOVER NEW PERSPECTIVES
Mr Muazzam Ali, Chairman of the Institute of Islamic Banking and Insurance (IIBI) which he founded in the UK passed away in 2005 in Karachi, Pakistan. He was on a short holiday with his wife.
He started his journalistic career with the Associated Press of Pakistan (APP) news agency in 1950. He was the chief Editor. In early 1956, he set up the Pakistan Press Association (PPA) that was later renamed as PPI, with the objective to provide competition to APP’s monopoly in Pakistan.
Silver Jubilee Celebrations – Pakistan Press International
He was also adviser to the sixth President of Pakistan in the late 1970s/1960s on media, Islamic affairs and overseas Pakistanis.
After leaving Pakistan in the early 1970s, following the birth of Bangladesh the late Muazzam Ali became closely associated with the Dar Al Maal Al Islami Trust, Geneva, a leading Islamic financial institution.
He served as Vice Chairman of DMI, working alongside Prince Mohammed Al-Faisal Al Saud, Chairman of the DMI Group. In this role, Mr Muazzam Ali devoted himself to the development of Islamic banking as a lifelong mission and remained closely associated with DMI for many years with the full support of its Chairman.
Prince Mohammed Al-Faisal Al Saud (1937–2017) was a Saudi royal, businessman, and one of the founding pioneers of modern Islamic banking. As the second son of King Faisal bin Abdulaziz Al Saud, he combined public service with global financial leadership and educational development.
Lifelong Mission
Prior to founding the Institute in 1990, Mr Muazzam Ali established two charitable organisations in London. In 1978, he founded The Islamic Council of Europe (ITE) as an educational and research centre, organising conferences and symposiums to promote Islamic education and related activities. In 1985, he established The International Centre for Islamic Studies (ICIS) to advance knowledge in Islamic finance for the public benefit. ICIS also aimed to offer professional qualifications in Islamic banking and insurance, promote programmes and publications to raise standards in Islamic finance practice, and serve as a source of guidance and consultation for the emerging Islamic financial sector.
“He took up the development of Islamic banking as a mission and remained committed to it throughout his life.”
In 1985, Professor Rodney Wilson of the University of Durham was invited to deliver what became one of the first lunchtime lectures on Islamic finance for professionals in the City of London an early example of Mr Muazzam Ali’s efforts to bridge knowledge between Islamic and Western financial communities.
“Islamic finance can only develop with well-qualified individuals committed to its principles and practice.”
Recognising that the development of Islamic finance required well-qualified and committed professionals, Mr Muazzam Ali founded the Institute of Islamic Banking and Insurance (IIBI) in London in 1990 as a not-for-profit organisation, superseding ICIS. IIBI has since continued to contribute to education, training, and the professional development of individuals in Islamic banking and takaful, grounded in principles of fairness, social justice, and equitable wealth distribution, while supporting enterprise and emphasising the human dimension of economic activity.
“Through IIBI, he created a platform where Western bankers could understand and engage with Islamic finance.”
He believed that those engaged in Islamic finance should uphold the highest standards of personal conduct, governance, and ethical responsibility, demonstrating accountability and acting as a safeguard against exploitation in financial dealings. Membership of IIBI was therefore open to all with an interest in Islamic economics, jurisprudence, and finance.
He also served as Chairman of the International Association of Islamic Banks (IAIB), established in Jeddah on 21 August 1977 under the auspices of the Organisation of the Islamic Conference. Founded through the efforts of Muazzam Ali, the IAIB was initially chaired by Prince Mohammed Al-Faisal Al Saud, with Muazzam Ali appointed Vice-Chairman and later Chairman.
With its secretariat established in Karachi in 1984, the IAIB promoted cooperation and coordination among Islamic financial institutions and published the Journal of Islamic Banking and Finance.
Selected Papers and Contributions
Mr Muazzam Ali contributed extensively to the discourse on Islamic finance. His papers and presentations include:
Recognition
“Brother Marhoom Muazzam Ali has effectively and earnestly contributed to the establishment and development of the DMI Group in his capacity as Member and Vice Chairman of the Board of Supervisors until the end of 1998. Thereafter, he continued with the same energy and commitment his work in the field of Islamic finance as Chairman of the Institute of Islamic Banking and Insurance in London.”
Journey Toward Islamic Banking
Mr Muazzam Ali made a significant contribution to Islamic finance not only as a banker through his role at DMI and as founder of IIBI, but also as a thinker and educator. His work reflects a sustained effort to develop both the intellectual and institutional foundations of Islamic banking.
Co-operation Between Islamic and Western Bankers
Despite differences in approach between Western banking systems and those guided by Sharia principles, Mr Muazzam Ali consistently advocated cooperation over confrontation. He identified practical ways in which such collaboration could take place, including partnerships between Western development agencies and institutions such as the Islamic Development Bank in projects across Asia and Africa.
“Co-operation between Islamic and Western banking is not only possible, but necessary.”
Through IIBI, he created a forum in London where Western bankers could engage with Islamic finance, contributing directly to the emergence of Islamic “windows” and, later, dedicated Islamic banking subsidiaries within major international banks.
Involvement with the Pioneers of Islamic Finance
Mr Muazzam Ali maintained close relationships with many pioneers of Islamic banking. In his introduction to In Search of an Islamic Economic Model, he highlighted contributions made at a landmark seminar held at Al-Azhar University in Cairo in 1981.
He particularly acknowledged Dr Ahmed El-Naggar, founder of the first modern Islamic savings institution established in 1963 in Mit Ghamr, Egypt. This institution operated on the principles of participation, decentralisation, and integrity laying early foundations for modern Islamic financial practices.
International Association of Islamic Banks (IAIB)
The International Association of Islamic Banks was established in Jeddah, Saudi Arabia under the auspices of the Organisation of the Islamic Conference (OIC) on 7 Ramadan 1397 AH (21 August 1977), with late Mr Muazzam Ali closely associated with its founding.
Its Board, chaired by Prince Mohammed Al-Faisal Al Saud, included Foreign Ministers from various Muslim countries. An Asian Secretariat was later established in Karachi in 1984.
The IAIB aims to strengthen cooperation among Islamic financial institutions and promote adherence to Islamic principles, including through its publication, the Journal of Islamic Banking and Finance.
Communicator and Facilitator
With a background in journalism, Mr Muazzam Ali was an effective communicator. He played an important role in explaining the structure and principles of Islamic financial instruments, including distinctions such as those between musharakah and conventional equity participation. He also described early instruments such as participation term certificates in Pakistan, which later influenced the development of sukuk.
“Those engaged in Islamic finance should uphold the highest standards of conduct, governance, and moral responsibility.”
He also contributed to greater understanding in the Muslim world of Western financial systems, including their limitations. In lectures and publications, he highlighted the social and economic impact of interest-based debt, while drawing parallels with critiques found in other traditions, including Christian ethical perspectives.
A Vision of Sustainable Islamic Banking
Mr Muazzam Ali combined idealism with realism. He recognised that Islamic banks must be both value-driven and financially viable. He argued that adherence to Sharia principles was not a constraint but could support sustainable profitability.
“There is no contradiction between adherence to Shari'ah principles and financial success.”
He also drew parallels between Islamic finance and the ethical finance movement in the West, closely following developments through conferences, research, and engagement with global financial discourse.
Mr Muazzam Ali supported may other causes in London, notable ones included:
A publishing house founded in 1981 producing English translations of works of traditional importance to the Islamic faith and culture.