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Asian Finance Bank plans Gulf aviation fund
Malaysian Islamic lender Asian Finance Bank will set up aviation and property funds with over 1.5 billion ringgit (Dh1.54 billion), aiming to capitalise on demand for alternative assets amid the global financial crisis.
- Reuters
- Published: 23:46 October 26, 2008
Kuala Lumpur : Malaysian Islamic lender Asian Finance Bank will set up aviation and property funds with over 1.5 billion ringgit (Dh1.54 billion), aiming to capitalise on demand for alternative assets amid the global financial crisis.
The bank, which is backed by Middle Eastern shareholders, is planning a Gulf aviation fund which could be denominated in the euro or dirham currency, Asian Finance chief executive Mohammad Azahari Kamil said in an interview.
It is also working with two companies to create a 500 million ringgit fund to develop properties around Kuala Lumpur, he said.
Islamic products
Demand for Islamic products would hold up as the global financial crisis drives investors into the safe haven of Islamic banking, Azahari said.
"In this very difficult fin-ancial meltdown, the conventional system has shown to the public that it has failed," Azahari said in an interview.
"It has failed not only because of corporate governance or transparency, but it has failed because of the structure where there is no equitable distribution of wealth between the bank and the customers."
Islamic finance is widely seen as the banking world's conservative alternative, as it forbids speculative activity and excessive risk and demands that partners share the profits and losses of a venture.
Qatar Islamic Bank and its associates have a 70 per cent share in Asian Finance. RUSD Investment Bank Inc. of Saudi Arabia has 20 per cent, while Global Investment House of Kuwait has 10 per cent stake.
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