VTB Capital, the Investment Business of VTB Group, announced the signing of a Memorandum of Understanding (MoU) with Liquidity Management House, a wholly owned subsidiary of Kuwait Finance House, to facilitate development of Islamic finance products and services in Russia and CIS region.

The MoU was signed between VTB Capital and Liquidity Management House in Moscow by Yuri Soloviev, Global CEO of VTB Capital, and Emad Al Monayea, Chairman and Managing Director Liquidity Management House.
The goal of this MoU is to introduce and establish financial products that offer Shariah compliant investment structures to originators in Russia and CIS and the International Islamic investor community. Masroor Haq, Head of Middle East and Africa for VTB Capital, Iqbal Mohammed, Executive Vice President Liquidity Management House and other senior members of both organizations were present at the occasion.

Islamic or Shariah compliant finance market, which is in excess of $750bn is increasingly becoming a mainstream component of the global financial system. International players (Sovereign & Corporates) are increasingly focusing on this prudent mode.

Liquidity House and its parent entity Kuwait Finance House are ranked amongst the leading player in Shariah Compliant Financing and international sukuk market. Kuwait Finance House, which is one of the first Islamic Banks in the world, is backed by the Government of Kuwait as one of its key shareholder. The Bank recently won the 'Best Islamic Bank of the Year award for 2008' from Euromoney.

Masroor Haq, Head of Middle East and Africa of VTB Capital, said, 'We are delighted to enter into an MoU with Liquidity Management House to develop Islamic Banking products - Both entities look forward to working with our key clients in our respective regions. VTB Capital will be starting its Middle East operations with an office in Dubai in the next few weeks. The Middle East presence will serve as a gateway for the Middle East and African investors to access Russia and CIS through the wide network of VTB Group. Through our partnership with Liquidity Management House, we will be offering fully-fledged Islamic Finance structuring services of international standards to our clients in Russia and CIS and accelerating the development process of this product in Russia.'

Mr. Emad Al Monayea, Chairman and Managing Director of Liquidity Management House, added that Liquidity House is keen to extend this relationship with VTB Group to develop Sharia complaint products to cater the ever growing needs of the Russian and CIS countries. He said KFH Group is always well known for its initiatives and innovation in creating value added products.

He further mentioned that Liquidity House can play as the gate way to GCC market for reputed Russian and CIS credits. He mentioned that KFH Group has presence in Bahrain, UAE, Jordan, Malaysia, Singapore, Australia, Turkey and recently in Saudi Arabia apart from strong market share in Kuwait.