IDB plans $1 billion investment bank

JEDDAH. October 12. KAZINFORM Establishing an Islamic mega-investment bank with an initial capital of $1 billion was discussed at a meeting of prospective investors at the headquarters of the Islamic Development Bank (IDB) in Jeddah on Sunday; Kazinform refers to the Arab News.

Ahmad Mohamed Ali, president of IDB, said the initiative was aimed at promoting the growth of the Islamic financial industry, expanding its global reach and improving liquidity management.

"The new bank will also aim at facilitating the establishment of an inter-Islamic banking market in line with Shariah principles," the IDB chief said, adding that initial contributions to the bank's capital had reached $250 million.

Mohamed Ali said the new investment bank would finance mega-investment projects in accordance with the principles of Shariah and devise Islamic solutions for liquidity management.

The establishment of the large investment bank is viewed as a mechanism for improving the role of the Islamic finance industry in supporting economic and social development. The bank will also facilitate the growth and spread of the Islamic finance services industry through the training of manpower necessary for the development of Islamic banking; Kazinform cites the Arab News.

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