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					Islamic Finance for Intra and
  Inter Regional Trade and
    Investment Facilitation
 Presentation made in AMED Working Group
 Meeting on 3-4 July 2006 in Bangkok
               presented by

           MUSTAPHA HAMAT
                CEO
Why Islamic finance?

•Profit and/or profit and loss sharing balance money
 supply with productivity and hence minimize inflation;

•Contract of exchange reduce corporate liquidation and
 bankruptcy.




                                                          2
Trade facilitation

                     Credit facilities are readily
                     available for import-export;
 Requirement         Takaful (Islamic insurance)
                     coverage


 What Islamic        Shariah-compliance L/Cs;
 financial
                     Shariah-compliance trade facilities
 institutions can
                     such as Murabahah Working Capital
 provide?


                     G2G Payment arrangement such as
 Settlement          Bilateral or Multilateral payment
                     arrangement (BPA & MPA)




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Direct Investment Facilitation
                Some examples…..:-
                Petroleum-based projects;
 Projects
                Plantation development;
                Property-based projects.
                Physical development-equity or/and long-term
    Funding     Shariah-compliance corporate bonds (Sukuk);
 requirement
   & funding    Working capital funding-L/Cs, Shariah-compliance
 instruments.   trust receipt (Murabahah Working Capital)

                Banking system such as Musharakah, Mudharabah,
                Ijarah, Murabahah etc. Foreign Direct Investment
                (FDI) such as Musharakah equity participation.
                Capital Market such as Coporate
  Sources of    Musharaka/Mudharabah/Murabahah sukuk
   funding      issuance. Fund Management such as
                establishment of funds for agriculture
                development, property development, fund for foods
                etc. Islamic Insurance (Takaful) funds.
                                                               4
Initiatives


  • Development of Islamic
    financial system;
  • Establishment of BPA/MPA




                               5
                        THANK YOU.


        ISLAMIC BANKING AND FINANCE INSTITUTE MALAYSIA SDN. BHD.
3rd   Floor, Dataran Kewangan Darul Takaful, Jalan Sultan Sulaiman 50000 Kuala Lumpur.
               (Tel) +603-2031 1010                   (Fax) +603-2031 9191
             (E-mail) info@ibfim.com                (Website) www.ibfim.com




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