As the Islamic finance industry is rapidly growing into a $2 trillion dollar industry many countries around the world are joining the band wagon and opening up Islamic Banks such as the Maldives who have seen the accomplishment of a fully fledged Shariah compliant bank.
The Maldives Islamic Bank opened its doors for the first time this week. MIB is the first Islamic bank in the Indian Ocean island nation. The new bank's CEO, Harith Harun said that the initial paid-up capital of the bank would be MVR150m ($11.7m), the minimum capital requirement for banks under Maldivian Banking Law.
Maldives Islamic Bank will offer domestic retail banking services including deposit, current and savings accounts and financing facilities structured in the form of Murabahah, Ijarah or Musharakah. MIB will also offer trade finance to importers and exporters. The new bank is a JV between the Islamic Development Bank and the Maldivian government.
IDB owns 70% of the equity, with the government controlling the rest. MIB was licensed to operate in August 2010. The Maldives has long been of interest to the Islamic finance sector, with Dubai's Noor Islamic Bank pledging to set up operations in the country back in 2008.
The Maldives have scope to further develop the Islamic banking sector and cater for customers wishing to use Shariah compliant services and products in the country. It is an unprecedented achievement being the very first Islamic bank on the Indian Ocean island and many investors from around the world will be looking to tap into opportunities in the Maldives in the infant stages of development of Islamic Finance.
Article from Global Islamic Finance Magazine
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