MALAYSIA: Kuwait Finance House (Malaysia) has launched the KFH Gold Account-i, the first Shariah-based gold account in the country. Based on the concepts of Bai As Sarf and Qard Hasan, the account provides customers a choice of either physical delivery or account credit via a statement. Bai As Sarf refers to the exchange of one monetary form for another.

Branching out

MALAYSIA: Bank Simpanan Nasional (BSN) is targeting to have 26 Islamic banking branches nationwide by year-end to widen its reach in the Islamic banking arena. Chief executive and general manager Adinan Maning said the bank planned to have at least two Islamic banking branches in every state. BSN currently has a total of 380 branches nationwide.

Sentral Exchange

MALAYSIA: Kuwait Finance House (Malaysia) has become the first foreign and Islamic financial institution to open a currency exchange at the Kuala Lumpur City Air Terminal in KL Sentral. CEO Jamelah Jamaluddin said KL Sentral was chosen because it is the focal point for both business and leisure travelers. Its other two currency exchange outlets are located at the Kuala Lumpur International Airport and Pavilion Kuala Lumpur.

New product

QATAR: Qatar International Islamic Bank (QIIB) launched a financing facility transfer product, targeting both its customers and non-customers. It offers a profit rate of 4.66% annually for a period of up to five years and 5.23% for six to ten years. The product is available to anyone with a salary of QAR5,000 (US$1,374), provided the salary is transferred to QIIB, said its assistant general manager (banking services) Mason Mohamed Alasfar.

Saving account

INDONESIA: BNI Syariah launched a new Shariah-based savings account, BNI iB Plus, targeting businessmen, professionals and sellers, said the bank’s vice president and head of project at the Shariah unit, Rizqullah. This new savings account will provide customers with more transaction details such as transfer and cash withdrawal. In addition, customers who open this account will be given a BNI Syariah debit card.

Double product offer

TANZANIA: Stanbic Bank Tanzania, a member of the Standard Bank Group, has launched two Islamic products. A transactional product called ‘TransactPlus’ and a current account which is Shariah compliant and provides the same features offered by conventional accounts. Its managing director Bashir Awale said: “Tanzania is an important market for the banking group being the gateway to East Africa, where 50% of the population is Muslim.”

Branch expansion drive

MALAYSIA: Bank Kerjasama Rakyat Malaysia (Bank Rakyat) plans to open 10 new branches this year, said its branch operations general manager Ahmad Kidzbullah Ridzuan. Bank Rakyat presently has 124 branches nationwide.

Sukuk 1Malaysia

MALAYSIA: The government will be issuing the Sukuk 1Malaysia 2010 amounting to RM3 billion (US$940 million) on the 21st June, targeting Malaysian citizens aged 21 years and above. Bank Negara Malaysia has been appointed to act as the issuer on behalf of the Ministry of Finance. The Sukuk has a three-year tenure and offers a return of 5% per annum. It has a re-saleable feature which provides the flexibility for investors to sell and purchase the Sukuk before the maturity date. The subscription period for the Sukuk is from the 20th May to the 9th June, 2010, with a minimum subscription amount of RM1, 000 (US$313).

BMW provides Islamic alternative

SAUDI ARABIA: BMW Financial Services is partnering with AQSAT, the financial company of Mohamed Yousuf Naghi Motors, to provide a Shariah compliant financial package to BMW Group customers in the country. Customers looking to purchase a BMW or MINI from Mohamed Yousuf Naghi Motors- BMW’s importer in the country can now avail themselves of a new financial solution which will enable them to directly finance cars as opposed to only leasing them. Commenting on the new partnership, BMW Financial Services vice-president (new markets, importer finance) Helmut Maier said: “With this partnership, we are enriching the BMW and MINI product offering by making financing a lot easier.”

New Islamic scheme

UAE: Mawarid Finance launched its new “Arbah Investment Club” scheme, which targets three categories of customers. The three categories are the Black Pearl which is offered against a deposit of AED5 million (US$1.36 million), the Gold Pearl for a deposit of AED3 million (US$817, 000) and the White Pearl against a deposit of AED1million (US$272, 000). The Arbah Investment Club offers investment opportunities for its members, with a one year fixed deposit with quarterly-paid profits.