Al-Aqeelah to set up international Islamic bank in M'sia

KUALA LUMPUR: Kuwait-based Al-Aqeelah Group would bring in assets and resources from international markets, especially the Middle East, to Malaysia and other Asian countries, once its international Islamic Bank in Malaysia is set up by January next year.

"We will conduct non-ringgit investment banking activities in Malaysia and other Asian countries through the bank," Al-Aqeelah Leasing, Finance and Investment Company of Kuwait managing director Hamed M Khajah told a press conference here yesterday.

The group said it had received an approval in-principle from Bank Negara Malaysia on June 20 to set up an international Islamic bank here. The new bank will be named Al-Aqeelah International Bank.

The new bank, which will have about US$100 million (RM330 million) capital, will be involved in three banking sectors, namely private equity and direct investments, corporate and structure finance as well as assets and wealth management.

It expects to be profitable in the second year of operation. It is currently setting up the bank's infrastructure and hiring manpower.

Al-Aqeelah is represented in Malaysia by IA Group Sdn Bhd, which helps the Al-Aqeelah Group in getting the relevant approvals and other operation activities until the bank is fully set up.

The Al-Aqeelah Group was formed in 2006, with principal investments in the agricultural, industrial and real estate sectors. It is also involved in fund management, Islamic brokerage services, loan and portfolio management as well as consulting services.

The company is also involved in real estate development in the Klang Valley for 10,000 units of property.

"We have yet to sign the land agreement with the party involved. The details of the project would be announced a month after the land agreement is finalised," Hamed said.