Kingdom Sees Future in Islamic Loans as Alwaleed Builds Tower
Kingdom Holding Co. (KINGDOM), controlled by billionaire Prince Alwaleed bin Talal, established a committee to help the company move toward Shariah-compliant loans as Islamic financing gains appeal among borrowers.
The committee will “prepare an integrated strategic plan for the conversion of future loans in accordance with the Islamic Shariah,” the Riyadh-based company said in an e-mailed statement today. The panel will comprise Sheikh Abdullah Sulaiman Al Manee’a, an adviser to the Royal Court, Sheikh Mohamed Ali Elgari, Sheikh Ali Abdulaziz AlNashwan and Abdulah Salim AlGhamdi.
Global banks including HSBC Holdings Plc and Standard Chartered Plc have set up Islamic banking units to take advantage of growing demand for financial products that comply with the religion’s ban on interest. Global Islamic financial assets are set to double to as much as $3 trillion by 2015, according to Standards & Poor’s estimates.
JPMorgan Chase & Co. said last week it would focus on clients in countries including Saudi Arabia and Malaysia amid plans to increase its Islamic business. Malaysia hosts the world’s biggest market for Islamic bonds, while Saudi Arabia boasts the world’s biggest share of Shariah-compliant assets.
Kingdom Holding, 95 percent owned by Prince Alwaleed, is building a 1 kilometer-high (0.62 mile-high) skyscraper in the Red Sea port city of Jeddah, seeking to surpass the Burj Khalifa in Dubai as the world’s tallest tower. The company said in September it completed financing for the $1.2 billion project.
The shares surged 3.6 percent, the most in a month, at 11:34 a.m. in Riyadh.
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