Words of Wisdom - the Editor

Peace.
Got busy with a new project. So couldn’t add more news. Although I came across a fine article by a brother on the history and future of Islamic Banking. I was surprised to know that Islamic banking had beginnings in 1975. Wow. That’s almost as early as my birth. And I guess if there are enough like minded people any idea is bound to grow. I too used to wonder if I can invest without plunging into interest based transactions.

UK I noticed is taking some fine initiatives to promote Shariah Finance. Also came across a western brother or atleast who calls Muslims his brothers and sisters but laughs cynically at the DOW Islamic index as 'bending backwards' to accommodate those guys who have four wives and cut of peoples hands. O well some people just don't get it, do they?

Sunday, March 30, 2008

AFB in expansion mode in Islamic finance market

 
KUALA LUMPUR: Asian Finance Bank Bhd (AFB), which is on an aggressive expansion programme, believes it is in a strong position to further penetrate the growing local Islamic finance market.

Chief executive officer Faisal Alshowaikh said although the bank was a relatively new player in this market, it was confident of making further inroads by leveraging on its institutional shareholders, distribution capability and product innovation.

"Leveraging on the experience and expertise of its established shareholders, as well as its strong distribution capability, AFB acts as a prime Islamic financing link between the Gulf States and Malaysia.

"We offer clients the competitive advantage by being the bridge to channel funds from the Middle East into Malaysia and the region. For companies in Malaysia and the region that are doing business in the Middle East, AFB offers strategic alliances and Islamic financial solutions," he said during an interview.

The shareholders of the bank are a Middle East consortium comprising Qatar Islamic Bank, Saudi Arabia-based RUSD Investment Bank Inc and Global Investment House of Kuwait.

This year, Faisal said the bank would also be concentrating its efforts in executing deals and beefing up its team of investment bankers to reap more business in the local market.

According to Faisal, AFB was also looking for a number of real estate projects and power plant financing for its Middle East clients as well as teaming up with some local Islamic banks to participate in transactions in the Gulf States.

He added that the bank's shareholders had a wide distribution network not only in the Middle East but also now in Europe, with the recent opening of its sister bank European Finance House in Britain.

AFB started operations in Malaysia on Jan 19 last year with the opening of its first branch in Kuala Lumpur, making it the third foreign Islamic bank after Kuwait Finance House (M) Bhd and Saudi Arabia's Al Rajhi Bank.

On product innovation, Faisal said: "We are looking at creating innovative products that are traditionally different from the local market and to us that is important.

"AFB is also looking at products that are widely used in the Middle East but rarely used in the local market, like Istisna."

The bank would be launching Malaysia and the region's first RM1bil Islamic Marine Fund next month and hopes to list it on Bursa Malaysia in the next two years.



ICL
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