IBFIM inks pact to co-develop Islamic finance in Maldives

By Siti Radziah Hamzah
The first Islamic bank in Maldives, Maldives Islamic Bank, is expected to be fully operational in January next year, said its chairman Khaled Al-Aboodi.

He said the management team of the bank has been appointed and is currently in discussion with the advisor of the bank to provide advisory services in terms of providing training for the bank.

"Prospects are tremendous in terms of serving the market. We plan to take between 20% to 25% of the total market of Islamic banking (in the country) within the next three to five years," he told reporters after the signing of a memorandum of agreement (MoA) between the bank and the Islamic Banking and Finance Institute Malaysia (IBFIM) yesterday.

Khaled said the bank will be focusing on three main sectors namely small and medium enterprise (SME), fisheries and trade. He added that the bank also aims to diversify to other areas such as saving, takaful and mortgage businesses.

Khaled said the bank is in discussion with a Malaysian partner to develop an Islamic saving scheme. Witnessing the signing were Bank Negara Malaysia deputy governor, Datuk Mohd Razif Abd Kadir, and chairman of IBFIM, Datuk Seri Zukri Samat.

The MoA will bind both parties to co-develop Islamic finance in Maldives through extensive study of the country legal and banking framework to create an environment for the growth of Islamic finance. Maldives Islamic Bank has been granted a licence by the Maldives Monetary Authority to establish the country's first Islamic bank.

Jeddah-based Islamic Corp for the Development of the Private Sector, a subsidiary of Islamic Development Bank, holds a 70% stake in the bank and the remaining 30% is held by the government of Maldives.Any source