- JEDDAH: The Maldives Islamic Bank (MIB) and the Islamic Banking and Finance Institute Malaysia (IBFIM) signed an agreement in Malaysia in which IBFIM will assist MIB to develop the Shariah-compliant banking products.
- The signing ceremony was held during the Global Islamic Finance Forum (GIFF) hosted by Bank Negara Malaysia.
The agreement was signed by Maldives Islamic Bank’s Chairman Khaled Al-Aboodi and IBFIM’s Chief Executive Officer Adnan Alias and witnessed by Mohd Razif Abd Kadir, deputy governor of Bank Negara Malaysia and Zukri Bin Samat, chairman of IBFIM.
The agreement states that both parties will assist in the development of Islamic finance in Maldives through extensive study of Maldives’ legal and banking framework to create a harmonize environment for the growth of Islamic finance. Maldives Islamic Bank has been granted a license by the Maldives government.
Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD), a subsidiary of Islamic Development Bank (IDB) Group, holds 70 percent stake in the bank and the remaining is held by government of Maldives.
Khaled Al-Aboodi said that the bank will be established within the next three months. He further said the bank hoped to capture up to 25 percent of its local market share within three years or so by offering Islamic finance products targeting small and medium enterprises (SMEs) and fisheries.