MUSTAPHA HAMAT

1

Islamic Finance for Intra and Inter Regional
Trade and Investment Facilitation
Presentation made in AMED Working Group Meeting
on 3-4 July 2006 in Bangkok
presented by MUSTAPHA HAMAT CEO
2
Why Islamic finance?

• Profit and/or profit and loss sharing balance
  money
• supply with productivity and hence minimize
  inflation
• Contract of exchange reduce corporate liquidation
  and
• bankruptcy.

3
Trade facilitation

• Credit facilities are readily available for
  import-export
• Takaful (Islamic insurance) coverage

Requirement
What Islamic financial institutions can provide?

• Shariah-compliance L/Cs
• Shariah-compliance trade facilities such as
  Murabahah Working Capital

G2G Payment arrangement such as Bilateral or
Multilateral payment arrangement (BPA MPA)
Settlement
4
Direct Investment Facilitation
Some examples..- Petroleum-based
projects Plantation development Property-based
projects.
Projects
Physical development-equity or/and long-term
Shariah-compliance corporate bonds
(Sukuk) Working capital funding-L/Cs,
Shariah-compliance trust receipt (Murabahah
Working Capital)
Funding requirement funding instruments.
Banking system such as Musharakah, Mudharabah,
Ijarah, Murabahah etc. Foreign Direct Investment
(FDI) such as Musharakah equity participation.
Capital Market such as Coporate
Musharaka/Mudharabah/Murabahah sukuk issuance.
Fund Management such as establishment of funds
for agriculture development, property
development, fund for foods etc. Islamic
Insurance (Takaful) funds.
Sources of funding
5
Initiatives

• Development of Islamic financial system
• Establishment of BPA/MPA

6
THANK YOU.
ISLAMIC BANKING AND FINANCE INSTITUTE MALAYSIA
SDN. BHD. 3rd Floor, Dataran Kewangan Darul
Takaful, Jalan Sultan Sulaiman 50000 Kuala
Lumpur. (Tel) 603-2031 1010 (Fax) 603-2031
9191 (E-mail) info_at_ibfim.com (Website)
www.ibfim.com