IDB says Mega Islamic Bank to start with $1bn

Bank will initial paid up capital of $1bn, will also originate and finance large projects

Jeddah based lender shall provide liquidity management solutions to create an Islamic interbank market (Getty Images)

Jeddah based lender shall provide liquidity management solutions to create an Islamic interbank market (Getty Images)

Islamic Development Bank, the Jeddah-based multilateral lender, said the Mega Islamic Bank will have an initial paid up capital of $1bn.

Mega Islamic Bank shall provide “liquidity management solutions in an effort to create an Islamic interbank market,” Islamic Development Bank said in an e-mailed statement. The bank will also originate and finance large projects across Muslim countries, IDB said.

Demand for services complying with Shariah is increasing about 15 percent annually and assets under management may almost triple to $2.8 trillion by 2015, according to the Kuala Lumpur based Islamic Financial Services Board, a standards body for the industry.

Nomura International is acting as financial adviser, Norton Rose is the legal adviser and Ernst & Young is consulting on MIB, IDB said.

Malaysia is expected to issue one “mega Islamic bank” licence by the end of the year, central bank Governor Zeti Akhtar Aziz told reporters in Kuala Lumpur on October 27.

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.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
GCC economies must live up to their potential to thrive: PwC chairman

GCC economies must live up to their potential to thrive: PwC chairman

No matter how much revenue VAT generates, it does not negate...

Analysis: Winning the battle against the Gulf's dirty laundry

Analysis: Winning the battle against the Gulf's dirty laundry

With its strategic trading position, it is little surprise the...

1
UAE banking merger could be just the start

UAE banking merger could be just the start

First Gulf Bank and National Bank of Abu Dhabi has created the...

Most Discussed
sponsoredTracking