Economics
Indonesia Exploits Malaysia Shutdowns to Lure Islamic Investors
- Nation is seeking to consolidate local banking industry
- Kuwait Finance House is closing in Malaysia after Elaf Bank
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Indonesia is drawing interest from Middle Eastern banks seeking to tap the world’s biggest pool of Shariah-compliant investors as some Islamic lenders wind down or close operations in Malaysia and Singapore.
Emirates NBD PJSC wants to invest at least $300 million in a new Shariah lender or acquire a stake in an existing one, Dhani Gunawan Idat at Indonesia’s financial regulator said in a phone interview. That’s a vote of confidence for Southeast Asia’s largest economy, which is also bidding to host the regional infrastructure unit of Saudi Arabia-based Islamic Development Bank that’s due to begin operations in 2016.