Friday, December 7, 2007

Asian Finance Bank Expands in Indonesia

from The Associated Press

The Asian Finance Bank, which is owned by Middle Eastern financial institutions, started operations in January in Malaysia. It was the third foreign Islamic bank to set up shop in the country. It said in a statement that its entry into Indonesia underscored its long-term strategy to have full representation in the region. There is great potential in Indonesia's Islamic banking sector which has grown at a compounded annual growth rate above 65% in the last four years, it said ... The bank is owned 70% by the Qatar Islamic Bank, 20% by Saudi Arabia's RUSD Investment Bank Inc. and 10% by Kuwait's Global Investment House. The Asian Finance Bank will "continually expand its footprint across the region for a share of Asia's Islamic banking sector," the statement added. Islamic banks operate under Shariah laws, which ban investments that pay interest or that derive profit from alcohol, tobacco, pork, gambling or weapons.

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