Bank Islam clinches first overseas deal in Pakistan
By Chong Jin Hun
May 12 2006
BANK Islam Malaysia Bhd, the country's oldest Syariah-based lender, has clinched its first overseas venture via a consortium set up to establish a full-fledged Islamic bank in Pakistan.
Bank Islam is a unit of BIMB Holdings Bhd.
The State Bank of Pakistan has approved the consortium's plans to start First Dawood Islamic Bank (FDIB), scheduled to begin operations within six months.
The other consortium members are Pakistan's First Dawood Group, Unicorn Investment Bank of Bahrain, Islamic Corp for the Development of the Private Sector (a wholly-owned unit of the Islamic Development Bank), and private investor Azam Essof Kholia.
FDIB will have an initial paid-up capital of 2 billion Pakistani rupees (RM123 million), of which Bank Islam and First Dawood will each own a quarter.
"This venture is part of Bank Islam's plans to expand to the Middle East and Asia-Pacific markets. The new bank will draw heavily on Malaysian technology which Bank Islam already has in hand," Bank Islam managing director Datuk Noorazman Abdul Aziz said in a statement yesterday.
Noorazman will assume the post of executive director of FDIB, while First Dawood's Rafique Dawood will be chairman.
"Pakistan is a key market because it is one of the fastest-growing economies in that region, with huge growth potential. As part of our product offering, Bank Islam will introduce takaful (insurance) services,” Noorazman said.
He said the venture is a big step in forging better business ties among the Organisation of Islamic Conference (OIC) countries as it involves consortium members from within the group, as well as the establishment of an Islamic bank within a member country.
The First Dawood Group has over 20 years experience with the stock exchanges and money markets in Pakistan.
Its subsidiaries and other businesses include investment and housing finance, and leasing and investment in capital market securities.
URL: http://www.btimes.com.my/Current_News/BT/Friday/Frontpage/BT566922.txt/Article/
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