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