Manila: The Development Bank of the Philippines (DBP) started honing its expertise in Sharia banking after the acquisition of Al Amanah Islamic Investment Bank, a senior official said.

"Interest in Islamic banking has been rekindled [in the Philippines]," said Ignacio Bunye of the Central Bank's Monetary Board.

DBP has sent 15 top executives to Malaysia to learn more about Sharia banking, said Bunye, adding this was done after DBP acquired the Philippine government's 69 per cent ownership of Al Amanah Islamic Investment Bank.

When the Monetary Board approved the acquisition, DBP became Al-Amanah Investment Bank's major owner.

DBP's ownership of Al Amanah will result in the bank's extension of financial assistance to small and medium businessmen in the southern Philippines, said DBP President Rey David. The bank will also launch remittance services of overseas Filipino workers (OFW) in the Middle East, David said.

There are an estimated five million Filipino Muslims, the majority of whom are based in the southern Philippines. The rest are in Muslim communities in Metro Manila.

A refurbished Al Amanah will serve as DBP's gateway to Brunei, Indonesia, and Malaysia which are Muslim-dominated countries in Southeast Asia, said David, adding that the long-term plan is to penetrate other Muslim countries worldwide. He did not give more details.

Sharia banking is one of the fastest growing segments of the global financial industry, said Bunye, adding that Islamic banking, fuelled by oil-wealth, is estimated to grow by 20 per cent a year.

The Al Amanah Islamic Investment Bank of the Philippines was created in 1973. "It's a proof that the Philippines pioneered in Islamic banking," said Bunye.

Al Amanah antedated the establishment of the Dubai Islamic Bank in 1975.

The Malaysian government and Bank Negara promoted Islamic banking in the 1980s.

The following decade saw the development of a regulatory regime for Islamic Financial Institutions by the Central Bank of Bahrain.

There are more than 300 Islamic financial institutions in 75 countries, with assets in excess of $400 billion (Dh1,47 trillion).