* By Fatma Cinar,

Islamic finance, a financial system based on interest-free banking principles and characterized by risk sharing, ethical investment approach and fairness, has achieved significant growth on a global scale in recent years. One of the key elements of this growth is to enable the training of competent human capacity. Human capital plays a vital role in the sustainable, dynamic and qualified growth of ecosystems. Both in the world and in Türkiye, Islamic finance education continues to develop through universities, research centres and various certificate programs.

Today, global Islamic finance assets exceed USD 4.5 trillion, and this system is having appetite not only in the Muslim world but also in different geographies such as Europe, Asia and Africa. Countries such as Malaysia, Saudi Arabia, the United Arab Emirates and Indonesia are pioneers in this field, while countries such as the UK, Luxembourg and South Africa are attracting investment in Islamic financial products by improving their regulatory infrastructure. Türkiye, with its young population, strategic location and robust banking infrastructure, is among the countries with growth potential in this ecosystem. In recent years, the increase in the number of participation finance institutions, sukuk issuances and incentives supported by public policies show that the demand for the sector is growing. However, this growth also brings with it the need for qualified human resources and professionals specialized in their fields, further addressing the strategic importance of Islamic finance education.

The institutionalization and sustainability of the Islamic finance system at both the local and global levels will be possible not only by increasing the diversity of products and services, but also by strengthening the academic, intellectual and terminological infrastructure that feeds this system. In this context, it is essential to develop a holistic approach to systematize Islamic finance education, to ensure that concepts specific to the field are properly understood and established, and to train qualified human resources.

The Islamic finance sector needs experts with both financial and Shariah knowledge. However, the lack of professionals with these multi-disipliclined qualifications is a significant challenge in the sector. More than 40% of Islamic financial institutions worldwide face challenges due to a lack of qualified and competent human resources. This poses risks for the assurance of the  products and services are Shariah compliant. This problem stems from the fact that while Islamic finance practices continue to expand across the globe, the basic terminology in this field is still shaped by conventional finance literature, leading to various problems of conceptual clarity and localization. This conceptual transposition undermines the authenticity of the field and leads to the use of a language that does not adequately reflect the basic philosophical, ethical and legal background of Islamic finance. As of 2024, more than 1,000 institutions worldwide offer Islamic finance education. However, most of these programs are theoretically oriented and lack practical applications. Moreover, the use of conventional finance terms has a negative impact on the authenticity and comprehensibility of Islamic finance.

For this reason, it is important to redefine the concepts within the scope of Islamic finance education in accordance with Islamic principles and references in order to strengthen the system's connection with the legitimacy ground. This situation leads to concept confusion and lack of understanding, especially for individuals who are new to the principles of Islamic finance. In addition, defining and disseminating the basic concepts of the field accurately, clearly and in accordance with the Islamic finance perspective is a priority need for increasing financial literacy.

In Türkiye, as of 2024, there are many academic programs in Islamic finance at the undergraduate, graduate and doctoral levels. This is an important step towards institutionalizing the sector and meeting the need for professional human resources. In particular, Istanbul Sabahattin Zaim University has assumed a pioneering role in the field of Islamic finance and encouraged deepening in the field by launching master's degree programs in 2012, doctoral programs in 2014 and bachelor's degree programs in 2016. Similarly, institutions such as Istanbul University, Marmara University, Ankara Social Sciences University, Sakarya University and K.T.O. Karatay University are also contributing to the strengthening of the academic infrastructure by opening graduate programs in Islamic finance and economics. In addition, Marmara University Institute of Islamic Economics and Finance (MÜİSEF), which was established by the Presidential Decree in 2019, is the first institute established in this field in Türkiye and offers a strong ground for academic studies in the field of Islamic economics and finance with the historical background of the university.

In the universities, the program curriculum provides a balanced mix of Fiqh, Islamic law, asset management and basic finance knowledge, thus ensuring both understanding of sharia principles and contemporary financial literacy. These developments show that Islamic finance education aims to provide not only theoretical but also practical skills. The increase in educational activities in this field in Türkiye allows for the localization of terminology and a better understanding of the unique structure of Islamic finance. In addition, institutions providing Islamic finance education provide students with practical experience through internships, practical courses and seminars in cooperation with the sector, which facilitates graduates to assume active roles in the sector. All these developments strengthen Türkiye's potential to become a regional center for Islamic finance education and present a promising picture for training qualified human resources.

In addition to these developments, the Participation Banks Association of Türkiye (TKBB) plays a pioneering role in training qualified human resources in Islamic finance. Through the training programs, certification activities and online learning platforms that it regularly offers to sector employees and interested parties, the TKBB both increases sectoral know-how and raises public awareness about the basic principles of Islamic finance. The Participation Finance Training Portal (LMS), run by the Association, enables finance professionals to gain competence in subjects such as Sharia compliance, interest-free financial products, ethical banking, asset and risk management with its wide range of course materials and distance learning opportunities. With these trainings, a complementary profile is sought to be created with Fiqh, Islamic law, and asset management trainings in addition to basic level finance trainings. 

In addition to training activities, the Participation Banks Association of Türkiye (TKBB) launched the "Interest-Free Finance Glossary/Katılım Sözlük" project in 2021 in cooperation with Sakarya University Islamic Economics and Finance Application and Research Center (ISEFAM) to address terminological ambiguities, one of the most important problems encountered in the institutionalization process of Islamic finance. With this project, the Turkish, English and Arabic equivalents of the main terms in the Islamic finance literature were compiled, thus contributing to the unity of terminology at both national and international levels. This glossary is considered an important step towards increasing the transparency, reliability and comprehensibility of the participation finance system by enabling not only academic circles but also sector professionals and regulatory bodies to use a common language. The TKBB's activities in this direction directly contribute to the strengthening of Türkiye's institutional capacity in the field of Islamic finance and the establishment of an educational infrastructure in line with international standards.

The sustainable growth of Islamic finance on a global scale is directly related to the creation of qualified human resources and a strong educational infrastructure. In this framework, it is of great importance that institutional structures act responsibly and adopt a multidimensional education strategy. Universities and educational institutions should develop holistic programs that cover both the theoretical basis and practical applications of Islamic finance; certification and continuing education opportunities should be provided to keep the knowledge and skills of industry professionals up-to-date. Furthermore, in order to prevent the confusion of Islamic finance terminology with conventional concepts, terminology guides and glossaries should be developed to create a common language and understanding, and widespread awareness-raising activities such as seminars, workshops and media campaigns should be conducted to raise public awareness. This holistic approach will not only improve the quality of education, but also significantly strengthen the effectiveness, credibility and international competitiveness of the Islamic finance ecosystem.

Fatma Cinar is the deputy secretary-general of the Participation Banks Association of Turkiye (TKBB). She can be contacted at fatmacinar@tkbb.org.tr.

This article was first published in IFN Volume 22 Issue 20 dated the 21May 2025.