According to the Business Times, Dutch banking group ABN Amro has revealed that it expects to be operating a wholly-owned Islamic banking subsidiary in Malaysia by 2008.
The decision for the opening of a new unit comes as the market for sharia-compliant assets sees a significant rise in demand around the region, reported Reuters.
However, ABN Malaysia managing director Harry Naysmith is cited by Reuters as saying: These are plans that we still have. They have not been shelved. It’s a question of timing.
He added: The central bank is keen for us to have a subsidiary, and that’s in line with our ambitions. That’s a route we will be following.
The Netherlands-based bank is the second foreign player to have expressed its interest to establish an Islamic unit, following Standard Chartered Malaysia, which has already applied for the license, reported the Business Times.
The news site also stated that the Dutch finance group launched its first Islamic structured investment product in Malaysia in March 2007, while a few more products are still awaiting regulatory approval.