Bursa Malaysia Berhad (Bursa Malaysia) and Bahrain Financial Exchange (BFX) have inked a memorandum of understanding (MoU) to provide financial products to Islamic market participants and strengthen bilateral ties between both organisations.
Among others, the MoU will include a feasibility study to identify products and market channels based on an already completed needs assessment for this market. The MoU also lays the foundation for both exchanges to jointly work on increasing awareness on investment opportunities in the respective Islamic markets as well as assist each other in further developing the Islamic investment framework across multiple geographies.
Dato’ Yusli Mohamed Yusoff, CEO of Bursa Malaysia, said: “The collaboration with BFX is aimed at facilitating cross border development in the Islamic financial markets, widening market reach, exchanging technological expertise and building a sustainable business model for both exchanges.
“This is a major step towards consolidation in the Islamic finance world. As Malaysia and the Middle East are the leading centers of Islamic finance, and as both Exchanges come together on a single platform, this will add to the strength of this industry. This initiative will go a long way in addressing the issues of standardisation, innovation and transparency thus providing a new dimension to the Islamic finance market.”
Arshad Khan, director of board at BFX, said: “This initiative is a major development for the Islamic finance market where the collaboration will seek to offer a wider risk management portfolio to global Islamic practitioners.
“By partnering with Bursa Malaysia we can ensure that the products offered are well defined, robust and fully Shariah compliant and I am honored that we have been able to work with such a well respected global business. I speak on behalf of all at the BFX in that we are extremely excited to commence in this project which reinforces our commitment to the Islamic market.”