Islamic Finance for Intra and
Inter Regional Trade and
Presentation made in AMED Working Group
Meeting on 3-4 July 2006 in Bangkok
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
Credit facilities are readily
available for import-export;
Requirement Takaful (Islamic insurance)
What Islamic Shariah-compliance L/Cs;
Shariah-compliance trade facilities
such as Murabahah Working Capital
G2G Payment arrangement such as
Settlement Bilateral or Multilateral payment
arrangement (BPA & MPA)
Direct Investment Facilitation
Physical development-equity or/and long-term
Funding Shariah-compliance corporate bonds (Sukuk);
& 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.
• Development of Islamic
• Establishment of BPA/MPA
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) firstname.lastname@example.org (Website) www.ibfim.com