Dubai Financial buys into Malaysian bank
Dubai Investment Group subsidiary Dubai Financial has bought a 40% stake in Malaysia’s oldest Shariah-compliant bank, Bank Islam Malaysia Bhd (BIMB) – the group’s largest single investment in the Asian financial sector to date.
The sale was conducted via a restricted issue of shares. DIG is the global financial investor of Dubai Holding, which was launched in October 2004 to consolidate infrastructure and investment projects in Dubai and to invest in other projects that will benefit the UAE and the region.
‘We are optimistic that this will push Malaysia into the forefront of Islamic banking, helping the country realize its vision to be a hub,” says Dato’ Noorazman Aziz, group managing director of BIMB Holdings, Bank Islam’s parent company, which will retain a 51% stake in the enlarged paid-up capital of the bank. “While it allows BIMB to tap into new markets, specifically in the Middle East, the new entity will also be recapitalized and explore other diversified financial services such as investment banking and asset management.”