Bahrain's Elaf Bank wins Malaysia licence

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!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Why banking in the Gulf will never be the same again

Why banking in the Gulf will never be the same again

New technologies are emerging in banking and finance at a rapid...

How Gulf SWFs have thrown funding lifeline to tech ventures

How Gulf SWFs have thrown funding lifeline to tech ventures

Saudi Arabia and other Gulf states have ploughed money into hot...

Saudi Arabia signals new investment strategies in $3.5bn Uber deal

Saudi Arabia signals new investment strategies in $3.5bn Uber deal

Deal makes the Public Investment Fund a player in the technology...

Most Popular
Most Discussed
sponsoredTracking