Bahrain's Elaf Bank wins Malaysia licence

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Malaysia’s government accounted for 62.5 percent of all Islamic bonds, or sukuk, issuances globally in the first quarter of 2010

Malaysia’s government accounted for 62.5 percent of all Islamic bonds, or sukuk, issuances globally in the first quarter of 2010

Bahrain’s Elaf Bank said Sunday it had been granted a license to operate in Malaysia as the closely-held lender seeks to tap into the Asian country’s growing Islamic finance sector.

The licence marks Elaf’s first international branch office and the bank plans to use Kuala Lumpur as its regional hub for Southeast Asia operations.

“Being a wholesale Islamic bank headquartered in the capital of Islamic finance in the Middle East, the logical next step would be to open our first international branch office in the capital of Islamic finance in South East Asia,” Jamil El Jaroudi, CEO of Elaf Bank, said in a statement.

The terms of the licence would allow Elaf Bank to conduct Islamic banking business in international currencies other than the Malaysian ringgit, the country’s central bank said.

Malaysia’s government accounted for 62.5 percent of all Islamic bonds, or sukuk, issuances globally in the first quarter of 2010, valued at $18.4bn. By comparison, not one sovereign sukuk came out of the Gulf Arab region during the same period.

Last year, Malaysian authorities issued conventional banking licenses to five foreign banks, including National Bank of Abu Dhabi and Indonesia’s PT Bank Mandiri.

 

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Shuttered banks, ATM queues and $77 daily limits: Greece plunges into crisis

Shuttered banks, ATM queues and $77 daily limits: Greece plunges into crisis

Breakdown in talks between Athens and its creditors plunged the...

Malaysia fund's $4.5bn rescue may weigh on Abu Dhabi's IPIC

Malaysia fund's $4.5bn rescue may weigh on Abu Dhabi's IPIC

International Petroleum Investment Co came to the aid of Malaysia...

Debt market beckons as Saudi bourse opens to foreigners

Debt market beckons as Saudi bourse opens to foreigners

Corporate bond issuance in the kingdom is the most active in...

Most Discussed
  • 14
    Why I'm giving all my wealth away

    It is a grand gesture by his HRH Prince Waleed in the interest of mankind at large. May god bless him with good health. Let other ultra rich follow his... more

    Friday, 3 July 2015 11:27 AM - sandeep
  • 4
    UAE to finish drafting corporate tax, VAT laws in Q3

    This will be my last day here if taxes are introduced. Why would anyone stay suffering at 40 Degrees + in the desert? Let's be honest, the majority of... more

    Friday, 3 July 2015 5:10 PM - Chris