IslamicFinance.de

Bank of Maldives (BML) inaugurated the new headquarters of its Islamic Banking arm in the capital city of Male. The facility will provide counter services for transactions, with a range of financial services available for both individuals and businesses. BML Islamic offers a comprehensive range of completely Shari’ah compliant alternatives to the bank's conventional products. The bank assured that its services were developed in accordance with international standards and best practices for Islamic Banking. Customer deposits are maintained in a separate fund utilized exclusively for Shariah-compliant purposes. The process is overseen by the bank’s Shariah Advisory Committee, which includes internationally recognised experts.

The Maldives Islamic Bank (MIB) has launched its Initial Public Offering on the Maldives Stock Exchange with the aim of raising MVR244 million (US$15.8 million), offering a 31% stake for public ownership. MIB is offering 6,975,000 shares at a price of MVR35 per share, including 4.5 million ordinary shares offered for subscription and 2.4 million offered for sale. According to the bank, buyers must subscribe to a minimum of 20 shares, which is equivalent to MVR700. Subscriptions exceeding the minimum amount must be in multiples of 10 shares. The expected date of listing of the shares or commencement of trading is November 12.

Bank of Maldives (BML) Islamic launched a range of Shariah-compliant financing products. BML Islamic Retailers’ Financing allows businesses with average monthly sales of MVR 50,000 to finance up to three times the monthly sales volume, and a repayment period of 48-months for financing facilities and 12-months for Wakala based overdraft facilities. Additional security is not required for financing up to MVR 500,000. BML Islamic Business Development Financing offers flexible collateral requirements for working capital, refurbishment, property development or to buy new machinery. BML’s Deputy CEO Mohamed Shareef stated that the new products show the Bank’s commitment to the growth of Small and Medium Enterprises in the country.

Maldives Center for Islamic Finance (MCIF) has launched Laaba, the first publication in the archipelago dedicated to Islamic finance. The magazine aims to be the first platform in South Asia to bring together regional hubs with global partners in engaging knowledge and sharing ideas. The first issue has embraced the theme of responsible and ethical finance and how this is aligned with Islamic finance. Laaba also includes exclusive interviews with CEOs across Maldives financial institutions, including the Maldives Islamic Bank, Maldives Capital Markets Development Authority and Amana Takaful.

The Maldives is working towards enlarging its Islamic finance industry to diversify its economy away from tourism. The country aims to become an investment hub for South Asia and centre for the halal industry in the region. To that end, President Yameen Abdul Gayyoom’s government has developed a roadmap to expand Islamic financial services throughout the archipelago. Last year, the Ministry of Economic Development started offering Islamic microfinancing through the Bank of Maldives, and earlier in 2016, the government launched Hazana Maldives, a special-purpose vehicle for the further development of Islamic finance. It also created a Shariah advisory board and laid the regulatory framework for sukuk investment.