IslamicFinance.de

Malaysia, the world’s biggest market for Islamic bonds, will issue a license before the end of this year to a new Islamic bank that will be jointly established by institutions from Asia and the Middle East.
The newly formed entity will have a capital of at least $1 billion, Zeti said in an interview late yesterday, without naming the companies or organizations involved. A second so- called “mega Islamic bank” permit may be issued by the central bank next year.
Muslim-majority Malaysia began pioneering Shariah-compliant finance with its first Islamic bank three decades ago. It is today responsible for more than 60 percent of the world’s $130 billion outstanding Islamic bonds, or sukuk, that comply with the religion’s ban on interest, according to data compiled by Bloomberg. The new bank will be able to facilitate larger issuance of such notes.
The country has offered tax breaks and other incentives to attract global financial institutions including Aberdeen Asset Management Plc and Franklin Templeton Investments in a bid to cement its role as the global Islamic financial hub of Asia.