MANILA: The Asian Development Bank (ADB) is keen to expand its cooperation with the Jeddah-based Islamic Development Bank (IDB) following the launching in early July 2009 of their joint $500 million Islamic Infrastructure Fund, which will invest in the equity of infrastructure companies of member countries common to both the ADB and IDB. According to Jaseem Ahmed, director financial sector, Southeast Asia Department at the ADB, the two partners are exploring opportunities to invest directly in infrastructure projects in these countries.

SC approves three new firms

KUALA LUMPUR: The Securities Commission of Malaysia (SC), the capital markets regulator, has approved three new Islamic fund management companies (IFMCs) to operate in Malaysia. They include the UK’s Aberdeen Islamic Asset Management; France’s BNP Paribas Islamic Asset Management; and Japan’s Nomura Islamic Asset Management. This follows the approvals in 2008 of KFH Asset Management, a subsidiary of Kuwait Finance House (Malaysia), and CIMB Principal Asset Management.

Daredia becomes CEO of Unicorn

MANAMA: Iqbal Daredia has been appointed the new chief executive officer of Unicorn International Islamic Bank (UIIB), the offshore Malaysian Islamic investment subsidiary of Bahrain-based Unicorn Investment Bank. The appointment, according to UIIB Chairman Vaseehar Hassan, is subject to final approval of Bank Negara Malaysia, the central bank. Daredia, currently the chief operating officer of Unicorn Investment Bank in Bahrain, will take over from Khalid Bhaimia, who has left the bank after a brief spell as CEO.

New Shariah regime approved

KUALA LUMPUR: The Malaysian Parliament (Dewan Rakyat) has approved a law that gives Bank Negara Malaysia’s National Shariah Advisory Council the legal status as the final arbiter in matters relating to Shariah issues in Islamic finance. The move springs from the debacle earlier this year in a turf war between a lower court and the appeal court relating to the Shariah validity of the Bai Bithaman Ajil (BBA) deferred payment sale used widely to finance Islamic mortgages in the Malaysian market.