EIIB-Rasmala launches Islamic trade finance fund

Nov 19 (Reuters) – EIIB-Rasmala, a venture between London-based European Islamic Investment Bank and Dubai’s Rasmala Group, has launched a sharia-compliant trade finance fund as a low-risk investment product, the firm said on Tuesday.

EIIB-Rasmala launches Islamic trade finance fund

EIIB-Rasmala launches Islamic trade finance fund

Islamic trade finance remains a tiny part of global banking business, but it is gradually attracting interest among banks and asset managers because of the rapid growth of global trade, including in Gulf economies.

The Cayman-domiciled fund is linked to emerging market trade transactions and the firm hopes to attract $100 million into the fund over the coming year, said Eric Swats, head of asset management at EIIB-Rasmala.

The fund targets a return of 4 percent with low volatility as the firm continues to expand its sharia-compliant product range, Swats added.

Since last year, EIIB-Rasmala has launched three Islamic funds including a leasing fund and a sukuk fund seeded with $25 million of the company’s own capital.

Earlier this year, Kuwait-based Asiya Investments launched an Islamic trade finance fund with $20 million in seed capital, aiming to cater to small Asian manufacturers.


Workshop on Islamic banking to be held


MUSCAT Crowe Horwath is organising a two day intensive workshop on Islamic finance and banking, under the patronage of HE Hamoud Bin Sangour Al Zadjali, executive president of Central Bank of Oman (CBO), at Crowne Plaza, starting on September 20th, a company press release said on Friday.

Islamic banking in Oman can mobilise huge resources and contribute significantly to economic growth and development of the country, the release added.

Islamic finance and banking exists in more than 50 countries. It is estimated to be worth around $1 trillion and has the potential to eventually be worth $5 trillion, according to rating agency Moody’s.

“During the economic recession, while the world was reeling under severe financial crisis, it was seen that the Islamic finance industry’s assets were on the rise,” said Amarjeet Majumdar, consulting partner of Crowe Horwath Oman. “That itself speaks about the robustness and the wide acceptability of the Islamic finance and banking products.”

“The success of an institution in launching Islamic finance and banking products would depend on effective design of systems and procedures and on effective training to develop efficient resource pool” said Majumdar.  The workshop will focus on the basic concepts under Islamic finance and banking and help delegates understand how to derive the best out of the huge potential in the field.

Crowe Horwath Oman is a member firm of Crowe Horwath International, a global top-ten audit and business advisory firm offering consulting services on risk management, corporate governance, strategy, Islamic finance and banking and human resource management