KUALA LUMPUR: Hong Kong and Malaysia signed an agreement last week to distribute Shariah-compliant funds between both jurisdictions, a move that officials hope will help boost Hong Kong’s fledgling Islamic finance market. The mutual recognition agreement allows authorized Islamic funds, such as Shariah-compliant equity or sukuk funds, regulated by Malaysia’s Securities Commission, to be marketed in Hong Kong and vice versa. Industry experts hope the accord will fast track the much-awaited sukuk bond market in Hong Kong by facilitating the potential participation of Malaysia’s 144 Shariah-compliant unit trust funds in Hong Kong’s developing Islamic financial market.
UBS to widen Islamic offerings
LONDON: The Islamic division of Swiss financial group UBS will broaden its derivatives offering to meet a growing demand for risk management tools. Division head Armen Papazian told Reuters UBS’s Islamic clients were seeking ways to hedge risks, predicting 20 percent growth in its Islamic derivatives business in the year to end-2010. “Islamic finance has been and still is a strategic priority for UBS,” said Papazian, who took up the position in March. The Islamic unit was integrated into the bank in 2006. Papazian declined to provide details on the unit’s contribution to overall revenues of the parent bank.
