IDB President Says ‘Working Very Hard’ to Form Megabank in 2012

Ahmad Mohamed Ali, president of the Jeddah, Saudi Arabia-based Islamic Development Bank, comments on plans to set up a Shariah-compliant megabank. He commented in an interview at the World Islamic Banking Conference in Singapore today.

“There’s a team working very hard to finalize this, hopefully by the end of this year. It’s very important for the Islamic banking industry to manage their liquidity in a professional way. The megabank will issue papers and instruments which will allow Islamic banks to buy or disinvest them.”

On the turmoil in western banking:

“We want Islamic banking to complement and contribute to the restructuring exercise of the global financial and banking system. There are certain elements in Islamic banking which are useful to the global financial infrastructure such as ethics, doing real business in a real economy rather than market speculation.”

To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net

To contact the editor responsible for this story Sandy Hendry at shendry@bloomberg.net

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