Brunei Stamps Mark In Global Islamic Banking
By CT Hj Mahmod

Bandar Seri Begawan - Brunei Darussalam's financial institutions have stamped its mark on the global Islamic banking with their application for participation for the triple ‘A' rated 'Sukuk' (Islamic bonds) issued by the Islamic Development Bank (IDB).

IDB's first 'Sukuk' was issued in 2003, which was reportedly oversubscribed and rated as the highest rating with triple A.

The second `Sukuk' issued last year received a similar response said Mr. Ahmad Mohamed Ali, President of IDB who was in the Sultanate to meet up with Brunei's local financial institutions recently.

With the growing significance of Islamic banking in the global financial market, the Sultanate is joining in the ride through its active membership with IDB, giving their support towards IDB infrastructure funding to finance a number of important projects in IDB member countries.

Projects like power generation, petrochemical and steel industry are among the important projects in IDB member countries.

Malaysia-based CIMB (Commerce International Merchant Bankers), the largest investment bank in South East Asia, hosted the meeting between IDB representatives with Brunei's local financial institutions.

Tabung Amanah Islam Brunei (TAIB), Insurance Islam TAIB, Islamic Bank of Brunei (IBB), Islamic Development Bank of Brunei (IDBB), Brunei Investment Agency (BIA) and Employees Trust Fund (TAP) were among the financial institutions they have met with recently.

IDB President described the meeting with the board of policymakers committee of IDB infrastructure fund as "successful", and said he is confident and thankful for the support Brunei is giving.

"Brunei is a very important member country, who is also a major stakeholder in the finance infrastructure funding, and IDB is eager to enhance its relationship with Brunei in many ways," he said.

According to Mr. Ahmad Ali, they (local financial institutions) proposed to participate in providing part of much needed financing infrastructure project in member countries to meet this important need.

On the growing importance of Islamic banking, IDB President said, "people realise Islamic banking is a very viable way of doing banking and businesses. Islamic banking is just another way to doing banking and sometimes far more suitable".

Apart from financing viable development projects, it is also because Islamic banking is one of the fast growing businesses, with an estimated growth of 10% to 15% in the over 1-billion range.

This has rendered the, significance of Islamic banking, as well as growing global interest not only in the Muslim countries but also in non-Muslim countries.

The IDB is a 55-member multilateral development financing institution aimed to foster economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Shari'ah or Islamic Law.

The functions of the bank are to participate in equity capital and grant loans for productive projects and enterprises besides providing financial assistance to member countries in other forms for economic and social development.

The bank is also required to establish and operate special funs for specific purposes including fund to assistance to Muslim communities in non-member countries in addition to setting up trust-fund. -- Courtesy of Radio Television Brunei

Click Here To Have Your Say On This Story

Brudirect.com News