Wednesday, November 21, 2007

Japan Developing Yen For Islamic Finance

by Shu-Ching Jean Chen from Forbes (US: New York)

On Monday, the first real estate transaction compliant with Islamic law was struck in Japan, with the asset manager Atlas Partners Japan partnering with Kuwait’s Boubyan Bank to buy three office buildings in Tokyo for 4.38 billion yen ($40 million). The buildings that Atlas and Boubyan bought on Monday were vetted thoroughly according to the standards of Islamic finance, which bars tenants such as interest-taking financial institutions, restaurants that serve alcohol or pork, hotels, cinemas and record companies, and businesses that deal with arms, animal genetic engineering or pornography. The transaction follows a decision in September by the country’s central bank, the Bank of Japan, to deepen its knowledge about Islamic finance by joining the Islamic Financial Services Board, an international standard-setting body, as an observer ... At the end of last year, Japan’s largest bank, Mitsubishi UFJ, forged an alliance with Malaysia's CIMB Group to provide Islamic financial investment banking services. Daiwa, Japan’s second-largest securities broker announced in August that it would list a Sharia-compliant exchange-traded fund in Singapore.

No comments: