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Malaysian business delegation in capital to woo UAE investments

ABU DHABI — A delegation of 58 senior executives from Malaysia International Islamic Financial Centre (MIFC) and Central Bank of Malaysia arrived in Abu Dhabi on Monday to further strengthen bilateral relations with the UAE particularly in the Islamic finance and other investment sectors.

MIFC delegates are scheduled to meet with leading Abu Dhabi agencies namely Abu Dhabi Investment Authority, Mubadala Development Company and InvestAD.

There are 120 Malaysian companies, operating in the UAE. The range of opportunities that Malaysia offers in Islamic finance stretch from facilities like the Bursa Suq Al-Sila’ (a web based commodity trading platform designed to enable Islamic finance that is administered by the Malaysian stock exchange) to new licences for banking, asset management and Takaful activities available for eligible parties.

Apart from this, other investment areas include oil and gas, plastic manufacturing, food, furniture and woods. At the same time, businesses in the MIFC community represent possible networking opportunities for UAE businessmen.

Addressing to a Press conference here on Monday 260410, Dato’ Mohammad Razif Abd Kadir, Deputy Governor, Central Bank of Malaysia, said, “In fact, the MIFC visit to Abu Dhabi is to further strengthen the linkages and cooperation between the UAE and Malaysia in the area of Islamic finance and in particular enhance the two way interactions between members of the MIFC community with Abu Dhabi business community. We intend to explore possible business and investment collaborations.”

MIFC offers to investors of Islamic financial instruments includes incentives, no restriction on portfolio investments, freedom to repatriate capital, profits and income and freedom to convert foreign currency into ringgit and vice versa, Kadir said.

MIFC provides flexibility on entry and exit of foreign investors’ funds and permission to enter into FX contracts with licenced onshore banks and no withholding tax on income from investments in Sukuk and no capital gains tax, Kadir stated.

In the past, leading Abu Dhabi institutions such as Mubadala Development Company and Abu Dhabi Investment Council had collaborated with Malaysia’s national investment agency Khazanah Nasional Berhad. In addition, Abu Dhabi Commercial Bank owns a significant stake in Malaysia’s RHB Capital Berhad,he said.

Kadir said, “Abu Dhabi is a key destination for the MIFC community. Malaysia offers a wealth of opportunities in its efforts to act as an Islamic finance platform and as a gateway to the Asian region. The UAE business community in particular have a heritage in being progressive and business savvy. This combination can be key ingredients to a stronger collaborative effort between the UAE and Malaysia that would be beneficial to both sides given the growth prospects of the Islamic finance industry.”
— anwar@khaleejtimes.com