The bank is studying several potential candidates in Indonesia that have been identified by Asian Finance Bank, which is 62 percent owned by the Gulf lender.
“In Indonesia, the competition is robust so we need something which is ready-made for us to kickstart immediately,” Asian Finance chief executive Mohamed Azahari Kamil said.
“We need to have a partner that has both a corporate and retail base that we can capitalize on.”
Azahari said “nothing concrete has transpired” in the acquisition plans and formal talks had yet to begin.
He declined to elaborate on the possible targets.
“We’re talking about Asia as a whole because we believe there is a lot of potential for Islamic finance even to grow in South Korea,” he said.
“The Indonesian operation, if it materializes, will provide a very good presence within the region.”
Indonesia, where about 85 percent of the population is Muslim, is seen as the next major growth centee for Islamic finance as traditional markets such as Gulf states and Malaysia reach saturation point.
Indonesia currently has 11 Islamic banks.
The country expects its Shariah banking assets to reach 130 trillion rupiah ($14.4 billion) by the end of 2011, from an estimated 90-92 trillion rupiah in 2010, according to the central bank.
Indonesia’s Shariah banking assets grew by an average 33 percent in the last five years.
The country is overhauling its regulatory framework to accelerate demand for Islamic products but some bankers say it could take years for the changes to bear fruit.
RUSD Investment Bank owns a fifth of Asian Finance Bank, Financial Assets Bahrain has 8 percent and Tadhamon International Islamic Bank 10 percent.
Reuters
Source : http://www.thejakartaglobe.com/bisindonesia/qatar-islamic-bank-seeks-ready-made-entry-to-indonesia-with-takeover/416586 - Jan 12, 2011
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