Malaysia’s IBFIM in

THE Islamic Banking and Finance Institute Malaysia (IBFIM) and the Maldives Islamic Bank will sign a Memorandum of Agreement (MoA) to set up the first Islamic bank in Maldives and to develop Maldives Islamic Bank Shariah-compliant banking products.

The MoA, among others, will bind both parties to co-develop Islamic finance in Maldives through extensive study of Maldives’ legal and banking framework to create a harmonise environment for the growth of Islamic finance.

The MoA will be sign by Maldives Islamic Bank’s Chairman, Khalid Khaled Al-Aboodi and IBFIM’s Chief Executive Officer, YBhg. Dato’ Dr. Adnan Alias and witnessed by YBhg. Dato’ Mohd Razif Abd Kadir, Deputy Governor of Bank Negara Malaysia and YBhg. Dato’ Sri Zukri Samat, Chairman of IBFIM during the Global Islamic Finance Forum (GIFF) in Kuala Lumpur.

Maldives Islamic Bank has been granted a licence by the Maldives Monetary Authority (MMA) to establish the country’s first Islamic bank.

Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD), a subsidiary of Islamic Development Bank (IDB) holds 70% stake in the bank and the remaining hold by the Government of Maldives. The license took effect on the 2 August 2010. Harith Harun, Managing Director of Maldives Islamic Bank, said they hope that the bank will be established within the next six months in line with MMA regulations.

IBFIM is an industry-owned and regulator-linked institute whose objective is to serve the needs of the Islamic finance industry stakeholders in talent and business development. In line with the Malaysia initiative launched by the Honourable Prime Minister, Dato’ Sri Mohd Najib Tun Abdul Razak, IBFIM is also being tasked with developing local expertise to ensure the availability of a pool of skilled professionals who are well-versed in Shariah matters and are able to provide a range of relevant high quality, value-added advisory and intermediation services. IBFIM also provides related services, namely training and education, Shariah advisory and consultancy, and research and development in Islamic finance.