Asian Finance Bank expanding ops here

By LEONG HUNG YEE

KUALA LUMPUR: Asian Finance Bank Bhd (AFB) is aggressively expanding its operations in Malaysia and will move to other countries in the region later, said chief executive officer Faisal Alshowaikh. 

“We will start as a one-branch bank and will increase the number of branches to seven in two to five years,” he said after Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz launched AFB’s flagship branch at Jalan Sultan Ismail yesterday. 

Faisal said AFB had allocated a “sizeable amount” for its expansion plans. He said AFB also viewed Malaysia as a hub to expand into neighbouring countries. 

The bank, which has a paid-up capital of US$100mil, will offer a full spectrum of syariah-compliant products. It will also offer consumer and wealth-management products. 

AFB was formed by a consortium of prominent names in the Middle East. Qatar Islamic Bank has a 70% stake, RUSD Investment Bank Inc of Saudi Arabia has 20% and Global Investment House of Kuwait owns the rest. 

Tan Sri Dr Zeti Akhtar Aziz launching the AFB branch. With her are (from left) Faisal Alshowaikh and AFB chairman Abdullatif Abdulla Al-Mahmoud

“REITs are what the Middle Easterners will be interested in at least in the next three years. 

“We are looking to acquire potential properties that have existing cash flow which can support dividend payout for the REIT investors,” he said, adding that he hoped the RM1bil could be fully utilised by year-end. 

Meanwhile, Zeti said the presence of new Islamic banks was expected to contribute to the overall growth of Malaysia’s fast developing Islamic financial system. 

“The presence of the Islamic banks will also contribute to increases in innovative products and services as well as new job creation. 

“These banks will further increase the diversity in the Islamic financial system of the country and enhance its potential to further contribute to the development of the Islamic financial services industry,” she said. 

She expects to see an increase in international trade and investment flows between the two regions, in particular Malaysia. 

When asked if Bank Negara would issue more Islamic banking licences, Zeti said Malaysia would be looking for more strategic alliances with international institutions in Islamic banking.