Saturday, 18th August, 2001

Deal To Set Up Islamic Money Market

Labuan: An agreement to set up the International Islamic Money Market (IIMM) is expected to be signed by the six founding members by the end of September this year, Labuan Offshore Financial Services Authority (LOFSA) director general Noorazman A. Aziz said.

He said that the articles of the agreement will be signed by Bahrain, Malaysia, Saudi Arabia, Indonesia, Brunei Darussalam and Sudan.

"Once this is signed, there will be a memorandum of understanding (MoU) on what we need to do as a country," he told reporters Friday.

Noorazman said that the establishment of an Islamic Money Mart would see existence of a globally accepted Islamic Financial set-up where the number of investors were expected to be more widespread.

More importantly, there would be more co-operation between Malaysia and investors from the Middle-East countries, he said.

Noorazman noted that today, there has not been any linkage among Islamic funds available in the conventional market.

There are some US$1 trillion (RM3.8 trillion) which has not been fully tapped, he added.

In this aspect, Noorazman said that the Labuan IOFC has a lot to offer, particularly with the existence of the Labuan Financial Exchange (LFX).

"The government has spent a lot of money and we have to make this happen," he said.