www.emirates247.com - Dubai-based Noor Islamic Bank is turning to the East, as it seeks to
expand its international footprint beyond the Middle East and Turkey.
The bank, a leading Islamic finance provider in the UAE, believes the
emerging economies of South East Asia, in particular, will provide
significant opportunities for it to further grow its multi-billion
dollar, cross border business.
“We see tremendous opportunities stemming from greater cooperation
between financial institutions in South East Asia and the GCC,” said
Hussain AlQ emzi, Group CEO of Noor Investment Group and CEO of Noor
Islamic Bank. (source)
“Asian countries are facing escalating infrastructure and development
needs, backed by solid economic growth, at a time when the outlook for
global lending markets remains uncertain. Our aim is to work with
existing financial institutions, in countries like Malaysia, Indonesia
and Singapore, to help bridge the funding gap created by the shrinkage
of the global liquidity pool.
“It is a model that we have successfully used in Turkey. There we
have worked with more than 85 financial institutions, from 26 countries,
to close Islamic market mandates valued at over $2.5 billion (Dh9.3
billion) in the past two years. We aim to replicate that model in Asia,
as we fulfill our mandate to become a global player in the Islamic
finance industry,” added Al Qemzi.
Over the past two years, South East Asia, which is home to 227
million Muslims and includes Indonesia, the world’s most populous Muslim
country, has seen rapid growth in Islamic finance. Meanwhile, secular
countries like Singapore, Hong Kong and Australia have opened the door
to Islamic finance by modifying local laws and tax regulations to permit
Shariah-compliant investments.
“Those countries with large Muslim populations, like Malaysia,
Indonesia and Brunei, offer significant retail and wealth management
business opportunities. While secular countries like Singapore and Hong
Kong, that are already global financial centres in their own right, are
well positioned to drive wholesale Islamic capital products, such as
Sukuks, equities and funds,” Al Qemzi said.
Noor believes that as trade and investment links between the Middle
East and Asia deepen, it is well positioned to help South East Asian
governments and corporates to attract Islamic finance investment from
the GCC, where liquidity levels remain high, despite lower oil prices.
“As the internationalisation of Islamic finance gathers pace, it will
increasingly contribute to the more efficient mobilisation and
allocation of funds between our two regions,” Al Qemzi said.
“Historically Asian investors used to come to the Middle East. However,
we foresee the reverse taking place as Asian economies open up to cross
border investments and demonstrate their resilience.”
During a recent visit to Singapore, Al Qemzi met with officials from
the Monetary Authority of Singapore (MAS), including Tai Boon Leong,
Executive Director Development, who oversees the growth of Singapore’s
nascent Islamic finance sector. The discussions focused on Noor’s entry
into the Singapore market and what role Noor could play in helping to
establish Singapore as a regional Islamic finance hub.
“We have always said we will go where the business is. And, although
Singapore is a relatively new player in the Islamic finance sector, its
reputation as a stable and open financial hub, makes it attractive to
GCC investors. A strong Islamic finance sector would complement
Singapore’s position as a regional finance hub,” Al Qemzi explained.
“We see a number of business opportunities stemming from our
engagement with Singapore, including Sukuk issuance and the provision of
shari’a compliant real estate investment trusts, both of which have
strong regional growth potential.”
At $80 billion, South East Asia’s Sukuk market is the largest in the
world, accounting for over two thirds of the global Sukuk market. In the
first six months of 2012, Malaysia accounted for $46.8 billion of the
total global Sukuk issuance of US $ 109.4 billion, according to KFH
Research.
Source: - Sept 6, 2012
