Dubai: Mitsubishi UFJ Financial Group’s (MUFG) banking arm, the Bank of Tokyo-Mitsubishi UFJ (BTMU) has launched Islamic finance business through its Dubai branch based in Dubai International Financial Centre (DIFC).
The Islamic window of the DIFC branch is intending to offer a number of Islamic products such as deposits, loans and trade finance solutions, Shichito Tobari, Regional Head for the Middle East and General Manager of the Dubai branch told Gulf News.
MUFG’s Islamic Window is intends to offer Islamic finance solutions for its existing customers and new customers across Europe, Middle East and Africa (EMEA) from its DIFC branch.
“We are the first Japanese bank in the region to offer Islamic finance solutions from our branch located in the region. With our presence on the ground, we expect to reach to a significant number of customers,” said Tobari.
On the lending side of the business, the bank has plans to offer both bi-lateral loans and is keen on participating in syndication deals as opportunities arise. The bank said it believes, Islamic finance offers big growth opportunities.
“This launch reflects the size of the Islamic finance industry in Mena [Middle East and North Africa] and the fact it is an area of finance that is growing much faster than conventional financial services. Introducing an Islamic Finance proposition in the Middle East made sense as it ensures proximity to our clients in the EMEA region, who are increasingly requesting these products,” said Tobari.
As one of the largest global banking groups with total assets of approximately $2.4 trillion (Dh8.8 trillion), MUFG’s Islamic window is not limited to one market or limited in size. The launch of Islamic finance business through its DIFC branch, according to Tobari is a continuation of its presence in the Middle East where it has been active for nearly 90 years and of its tradition of leading the way in Islamic finance since 2008 started in Malaysia.
“This latest move demonstrates MUFG’s commitment to both EMEA and the Islamic Finance sector where we see great growth potential. It will also help towards establishing Dubai as one of the leading global hubs for the Islamic economy and MUFG’s robust balance sheet enables us to have a strong and stable presence in this market,” he said.
MUFG’s EMEA Islamic window has a prestigious Sharia Supervisory Board comprising of Dr. Nizam Yaqubi, chairman of BTMU Sharia Supervisory Board; Dr Mohammad Ali Elgari, is a professor of Islamic Economics and is an expert at the Islamic Jurisprudence Academy (OIC), Jeddah and Dr Mohammad Abdul Rahim Sultan Al Olama, is a professor of Islamic jurisprudence at the Sharia faculty of the United Arab Emirates University in Al Ain and an acknowledged expert in Sharia compliant finance.
