Saudi Arabia to Join Turkey, Indonesia to found Islamic Finance infrastructure bank
Arabia has joined Turkey, Indonesia and the Jeddah-based Islamic Development
a prospective founder member of a new Islamic finance infrastructure bank,
according to Indonesia's finance minister.
b>On the sidelines of the annual IDB
meeting of governors in Jakarta on Thursday, Bambang Brodjonegoro said the four
could contribute around $300 million each for the project, with plans calling
for the establishment of two regional Islamic banks based in Istanbul and
Jakarta.span style="font-style: normal;">
It will be the effort of not only the four of us, but also others. But the four will be the founders.
The new entities could be operational as early as next year, tasked no only with financing via Islamic bonds (sukuk) but also supporting the secondary market for those financial instruments, Brodjonegoro added.
In order to make a market for sukuk, the existence of this bank will be very important.
The IDB held its annual meeting of governors in Jakarta last week, with 57 member countries represented.
Efforts to create an Islamic bank with the balance sheet to underwrite large infrastructure deals dates back more than a decade, but previous efforts have failed to materialize.
The addition of Saudi Arabia, the IDB's largest shareholder and home to some of the world's largest Islamic banks, could spell success this time.
Last year, Indonesia, Turkey and the IDB said they planned to launch an Islamic infrastructure bank, but until last month no other countries had signaled an interest to join them.
The asset-backed nature of Islamic finance should in theory make it ideal to build highway networks and ports, with no shortage of projects across Muslim-majority countries.
But technical, legal and political issues have traditionally confined Islamic finance to mid-sized deals with shorter tenors.
The IDB has also held discussions with the China-backed Asian Infrastructure Investment Bank (AIIB) to use Islamic finance in joint transactions.
The two multilateral lenders could help co-finance a $1.74 billion national slum upgrading project in Indonesia, which could be announced as early as next month.
- 2:12 Bank nizwa contributes in financing iconic mall of muscat
- 3:23 Conventional bond, sukuk listings hit $77.47bln on Nasdaq Dubai
- 2:44 Sharjah Islamic Bank's net profit rises by 6% in Q1 2019
- 2:40 iMAL to power digital banking for Ameen Al-Iraq Islamic Bank
- 2:22 Emirates Islamic Bank's net profit surges 97% to Dh411 million
- 4:36 Suriname, Guyana seek Islamic funding for development
- 2:52 AIIB and IsDB Group join forces to grow sustainable infrastructure
- 1:35 Saudi Arabia joins Islamic finance body, could boost cross-border deals
- 0:51 Saudi Arabia's Bank Al Bilad prices 2 bln riyal sukuk issue
- 1:44 New Policies in Indonesia starting to Bear Fruit, A long way for Turkey to get back on track
- 3:49 Bank Asya Seizure Hastens Turkey's Islamic Finance Drive
- 1:51 KFH first bank in Kuwait to Join RippleNet for cross-border instant payments
- 4:03 UNIT 3 RIBA, INTEREST AND PROFIT A
- 3:09 UNIT 3 RIBA, INTEREST AND PROFIT B
- 3:07 UNIT 3 RIBA, INTEREST AND PROFIT C
- 3:29 UNIT 3 RIBA, INTEREST AND PROFIT D
- 19:37 Economic System Of Islam Part 01
- 26:27 The foundation of Islamic Economics Part 02
- 37:10 Finance and Financing Part 04
- 13:49 Basic Principles of Islamic Economics Part 03
- 2:44 UNIT 1 ECONOMIC SYSTEM OF ISLAM PART I
- 4:21 UNIT 1 ECONOMIC SYSTEM OF ISLAM PART H