(Sukuk.net - Bahrain Tribune) Dubai-based Noor Islamic Bank announced yesterday that it has entered into a joint venture to establish the first Islamic bank in Maldives.

The new entity, to be named Noor Maldives Islamic Bank, will be a joint venture between Noor Islamic Bank, the Ministry of Finance and Treasury of the Republic of Maldives and the Investment Corporation for Development of the Private Sector, an affiliate of the Islamic Development Bank.

Noor Maldives Islamic Bank will initially focus on consumer and corporate banking, as well as business solutions for small and medium enterprises. The bank with an authorised capital of $100 million and a paid up capital of $10 million is expected to be operational by the end of the year and be headquartered in the capital Malé.

The agreement was signed in Maldives by Dr. Ahmed Al Janahi, Deputy Group CEO, Noor Islamic Bank, Wasim Ibrahim, Minister of Finance and Treasure, Republic of Maldives and Basel Haj-Issa, Director of the Unit Investment Fund, Islamic Corporation for the Development of the Private Sector.

The agreement marks Noor Islamic Bank's second international expansion initiative in rapid succession, following its establishment of an overseas representative office in Tunisia last month.

The bank's vision is to be the leading global Islamic bank and it aims to establish its presence on three continents over the next five years, said its Chief Executive Officer, Hussain Al Qemzi.

"This landmark agreement marks an important phase in the development of Noor Islamic Bank, taking its value proposition beyond domestic borders. With its largely Muslim domestic population, Maldives provides attractive growth opportunities for Islamic banking and for Noor."

We are honoured to partner with the Government of the Maldives in establishing the island's first Islamic bank, and to embark on our first venture with the ICD, an affiliate of the Islamic Development Bank. By leveraging the strength of each of the partners, I am confident that this move will further pave the way for the development of the country's financial sector."

Noor Islamic Bank will lead the establishment and be responsible for managing the operations of the new bank under a management contract.

The economy of the Maldives has seen double-digit growth over the last two years, fuelled mainly by the tourism sector. Maldives enjoys the highest GDP per capita of approximately $4,600 among South Asian countries.

The country's banking sector has also been growing gradually and the total liquidity in the banking system accelerated from 12 per cent in 2005 to 21 per cent in 2006.

"This is an important milestone in the development of the Maldivian financial sector. Our joint venture partners represent leaders in their respective fields, and we look forward to collaborating with them to launch and grow Noor Maldives Islamic Bank", said Hon. Qasim Ibrahim, Minister of Finance and Treasury of the Republic of Maldives.

At the signing ceremony, Basel Haj-Issa, Director of the Unit Investment Fund of the Islamic Corporation for the Development of the Private Sector said: "The Islamic Development Bank, through its private sector arm the ICD, is committed to developing and promoting private sector Islamic banking in each of its member countries. We are pleased to participate in this opportunity to offer Islamic financial services to the population of the Maldives, and are committed to ensuring the success of this venture."

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