Malaysia Looks To Expand Its Islamic Finance Industry

Bloomberg reports today that Malaysia is taking several steps to expand the international reach of its Islamic banking industry. It is attempting to attract a large international bank that would provide services that comply with shariah law. Also, last month Malaysia's central bank raised the percentage of foreign ownership permitted in local Islamic banks. In addition, the government is considering a new issuance of $1 billion in global Islamic bonds. Malaysia’s government successfully raised $600 million in 2002 through the sale overseas of sukuk (Shariah-compliant bonds).