CIMB Ties Up With European Islamic Investment Bank

 

KUALA LUMPUR, Malaysia's second largest financial institution, CIMB Group has signed a Commodity Murabahah agreement and a Foreign Exchange (FX) - Forward Agreement with London-based European Islamic Investment Bank (EIIB).

The tie-up with EIIB is expected to support Bank Negara Malaysia's (BNM) objective in encouraging Malaysian banks to promote and expand their Islamic banking activities in overseas markets, CIMB Islamic Bank's chief executive officer and executive director, Badlisyah Abdul Ghani said today.

The signing ceremony took place on the sidelines of the London Sukuk Summit and witnessed by BNM Governor, Tan Sri Dr. Zeti Akhtar Aziz. Also present at the event was Malaysian High Commissioner, Datuk Abdul Aziz Mohammed.

"Our license in the U.K allows us to operate a wide array of Islamic banking businesses and we are constantly enhancing these service offerings to cater to our wide customer base, including those in the Gulf Co-operation Council," Badlisyah said.

These new developments further strengthen CIMB Group's presence in the Islamic banking industry in the UK, specifically in Islamic money market and foreign exchange segments, he said in a statement released here.

Badlisyah said the UK government's initiative with regards to Islamic banking has enabled players like CIMB Islamic to do more business in the UK and offer customers a wider choice of Islamic products and services.

"The majority of Islamic transactions in the UK are centred on home financing schemes. Our collaboration with EIIB will allow us to bring a more varied product set to the UK market," he said.

CIMB Group had earlier signed an agreement with BNM to participate in the Commodity Murabahah Programme (CMP).

CMP is an instrument that acts as a liquidity management scheme for Islamic bank overnight and short-term deposits, using crude palm oil as the underlying commodity trade for investment.

BNM has thus far executed CMP master agreements with eight Islamic banking institutions to promote the use of the instrument for liquidity management.

Currently, Badlisyah said that there were leakage in Islamic funds, meaning that the funds are used for non Syariah compliant investment products.

"We need a situation where Commodity Murabahah conducted in the market is done in such a way that the proceeds arising from the transaction are utilised in an Islamic manner and this is addressed in the agreements," he added.

The two fronds will each consist of two mid-rise apartment buildings and 17 townhouses. Meanwhile, the two clusters will each house three low rise apartment buildings with two and three bedroom loft apartments with private gardens.
Both the fronds and the clusters will offer a variety of leisure facilities.
"We are thrilled to announce the launch of Jumeirah Heights - the newest member of Nakheel's Jumeirah family," said Mohammad bin Ganem, senior manager, Jumeirah Heights.
"We aim for Jumeirah Heights to provide what professionals and young families are looking for in Dubai."
An exclusive launch was held on Wednesday for invited customers of Tamweel, Dubai Islamic Bank and Nakheel. The general sales launch will take place in the following few weeks, says Nakheel.
The company said finance options will be available with loan to value ratios of up to 90-95 per cent.
Nakheel's current portfolio of developments includes The Palm trilogy, The World, Dubai Waterfront, Jumeirah Islands, Jumeirah Park and Ibn Battuta Mall.
Nakheel declined to reveal the cost of the project.
Two metro stations will be situated within reach of the project by the time of its completion.
Nakheel claims the project will be a low-density community, with residences set across 20 hectares of land. Landscaping will include lakes and water features.

 

 

 

 

 

 
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