Islamic fund to set up regional office in Brunei<\/p>\n
SINGAPORE (AFP): A planned US$1.5-billion Islamic fund to
\nfinance infrastructure projects will establish its Asian regional
\noffice in Brunei, the fund's manager said Monday.<\/p>\n
Emerging Markets Partnership (Bahrain) E.C., the general
\npartner and manager for the Islamic Development Bank
\nInfrastructure Fund, said in a statement it had received approval
\nfrom Brunei's finance ministry.<\/p>\n
Brunei officials said the decision was expected to boost the
\ntiny, oil-rich sultanate's ambitions to find a niche as an
\nIslamic financial center.<\/p>\n
Mindful that its oil resources would run out in 25 years,
\nBrunei in July announced reforms that would diversify its economy
\nand reduce total dependence on petro dollars.<\/p>\n
Deputy Finance Minister Haji Munap said Monday that
\nestablishing the fund's regional office in Brunei marks \"an early
\nsuccess in Brunei Darussalam's strategy to develop an
\ninternational financial center\" focussing on Islamic finance.<\/p>\n
The fund plans to invest in private sector infrastructure
\nprojects such as power, telecommunications, natural resources
\ndevelopment and transportation.<\/p>\n
Of the total fund, $1 billion will be invested as equity
\ncapital and $500 million will be an underwriting facility to
\npromote the use of Islamic finance in projects where equity is
\ninvested.<\/p>\n
Mumtaz Khan, chief executive of Emerging Markets Partnership,
\nsaid the fund \"can provide diversified sources of financing for
\nregional private sector infrastructure projects.\"<\/p>\n
Such investments could start in Brunei and neighboring
\nMalaysia, later expanding into Indonesia, the world's most
\npopulous Muslim country.<\/p>\n
The Philippines' southern island of Mindanao is also home to
\nthe largely Roman Catholic nation's Muslim minority, who have
\ncomplained of being left out in terms of development funds.<\/p>\n
Brunei this year also announced plans to set up a global
\nIslamic money market in cooperation with the central banks of
\nBahrain, Indonesia and Malaysia.<\/p>\n
In August, Brunei adopted global accounting standards and
\npledged to push for legislation to cover international banking,
\nglobal company operations, trust and limited partnerships as well
\nas registered agents and trustee licensing.<\/p>",
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