QIB announces the opening of the Asian Finance Bank (AFB) in Malaysia

QIB and its strategic partners will have a 70% stake in this bank while Rusd Bank and Global Investmetn will have 20% and 10% respectively

H.E. Tan Sri Dato' Sri Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia inaugurated the bank on Wednesday 28th.Mach in presence of a high delegation from QIB headed by H.E. Sheikh Jassim Bin Hamad Bin Jassim Bin Jabor Al Thani , Chairman, Mr.M.Abdullatif Al Mana, Deputy Chairman ,Mr. Salah Al Jaidah, Chief Executive Officer, H.E. Abdul Hamid Mubarak Al Kubaisi the Ambassador of Qatar at Malaysia , Dr. Saleh Malaika Rusd Banak Malaysia, Mr. Fouad Hail Saeed Chairman Hail Group Malaysia,The Qatari Businessman Mr. Mohamad Jasim Abu Abbas Mr. Abdul Rahman Mustafa ,G.M..Risk Group and other eminent QIB shareholders and partners attended the ceremony besides a host of potential financial personalities from the Gulf and Malaysia.

In a speech on this occasion, Mr. Abdullatif Abdullah Al-Mahmmoud, Chairman of the Asian Finance Bank - MD.of Qatar Islamic Bank qualified this project as being "the first of its kind and the latest Islamic bank in Malaysia" adding that it would look forward to expand its activities regionally.

He said the inception of the AFB was the outcome of an instrumental Master Plan started by the Central Bank of Malaysia on 2001 for the development of Islamic banking in the country. It had determined the feasibility of having a dual banking system whereby Islamic banks, and conventional banks offering Islamic banking products, can operate in parallel in Malaysia which, he added, was the first country in the world to pass the legislation for Islamic banking in 1983.

Mr. Al Mahmoud confirmed that strong legal and financial structures were already in place in addition to a fully developed comprehensive Shariah framework that "had certainly provided the confidence to the Consortium of Middle Eastern financial institutions via the Asian Finance Bank, to select Malaysia as the hub of its Islamic banking operations in this region", he said.

AFB's Chairman qualified the consortium standing behind the Asian Finance Bank as well established financial institutions , namely, Qatar Islamic Bank and associates , RUSD Investment Bank and Global Investment House organisations, each having a history of success in the development of the Islamic market in their respective countries.

"Many might have asked was it the right moment for us to be here with so many financial institutions already present and offering Shariah compliant products? Our definite answer has always been, yes. Our confidence in selecting Malaysia as our hub and link to the Middle East was well founded", said Mr. Al Mahmoud. He justified his confirmation by the fact that Malaysia is one of the pioneers in Islamic banking and has the highest number of Sukuk issued worldwide and that Islamic banking in Malaysia is highly supported by the central bank and the government. He said in endorsement of this statement that in its recent budget the Malaysian government has announced the MIFC initiative, which gives tax incentives of up to 10 years (exemption) for non-ringgit transactions or Islamic bonds issuing in Malaysia, qualifying this step as highly encouraging for foreign investors such like us and our partners from the Gulf.

AFB Chairman confirmed in this context that Malaysian market is large enough for many players in the Islamic banking and finance industry. Denying that the new bank considers itself as a competitor, Mr. Al Mahmoud said with confidence, "We consider ourselves as partners in helping to make Islamic Banking successful".

"Strategically, we believe that we are opening at the right time where Islamic financial services industry in Malaysia is at the threshold of its new stage of development and its instruments gaining a wider acceptance as a form of financial intermediation globally", continued Mr. Al Mahmoud.

Expressing finally his confidence that Islamic banking will emerge as an important component of the overall regional and international financial systems, he confirmed that AFB, after taking roots in Malaysia, would look for expanding into other countries in this region, such as Brunei, Singapore and Indonesia. He added in this context that by setting up its first headquarters in Kuala Lumpur, AFB hopes to actively contributing, God willing, in the growth and development of the Malaysian economy.

In a declaration made on the margins of the inauguration ceremonies of the Asian Finance Bank (AFB), Mr. Salah Al Jaidah, CEO of Qatar Islamic Bank stated that the opening of the new bank constitutes a qualitative benefit to QIB's activities and significant enhancement to its pioneering role among Islamic banks.

He confirmed that AFB should pave the way to Qatar Islamic Bank's clients in the Gulf and investors Asia by offering them promising investment opportunities. It shall also consolidate cooperation relationship and mutual exchange of investments.

The opening of AFB should also constitute a new dimension to the bank's network of finance houses and banks that QIB has led their incorporation, he continued, citing the examples the Arab Finance House of Lebanon, the European Finance House currently under incorporation and Qatar Investment (QINVEST) expected to start its activities in the course of this year.
From his part, Mr. Faisal Al Shuwaikh, CEO of the Asian Finance Bank, state that AFB tends to be a contact point and link between Malaysia and certain neighboring countries. To this end, the bank intends to expand its activities to Singapore, Indonesia and Brunei to attract investments from the Asian area to the Gulf, i.e. make a reversal attraction of investments and benefit of the fast-growing Asian economies in providing good opportunities to investors from both sides.

The Asian Finance Bank is one of the giant steps led by Qatar Islamic Bank within its strategy of expansion at regional and international levels, continued Mr. Faisal Al Shuwaik mentioning at the same time that investment opportunities are not limited to Europe and USA or the Gulf region. Strength of the Asian economies, which provide numerous opportunities to interested parties, should also be taken in consideration.

AFB's Chief Executive Officer said the bank is planning to open 5-7 branches within its first five years of inception. As for the bank's policy, he said that, in addition to retail banking, AFB shall focus on large investments and corporate financing in Malaysia and neighboring countries that have investment links with the Gulf.

He praised in conclusion the authorities that offered their support and assistance in the establishment of the Asian Finance Bank, whether it was the Malaysian Central Bank or other involved local parties in addition to the strategic partners of Qatar Islamic Bank.