HSBC has expanded its shariah-compliant products to Bahrain and Bangladesh.
Companies in Bahrain will now be able to use trade finance products and working capital finance solutions based on murabaha concepts.
"We understand that having access to shariah-compliant products is crucial to the expansion and development of the business."
Furthermore, business accounts and short-term investment needs will now have a shariah-compliant option.
HSBC opened its global Islamic financial services business, HSBC Amanah, in Bahrain in 2008.
“[Bahrain] is one of the key Islamic financial centres in the world and demand is strong for shariah-complaint banking here. Now our corporate customers can also enjoy HSBC’s global connectivity and its best-in-class shariah-compliant offering,” says Patrick Gallagher, chief executive officer of HSBC’s Bahrain operations.
In Bangladesh, businesses will have the option of using a number of shariah-compliant banking products such as guarantee solutions, import services, payments and cash management, among others.
Bahrain and Bangladesh join HSBC Amanah’s corporate banking presence in Saudi Arabia, the UAE, Qatar, Malaysia and Indonesia.
HSBC Amanah’s global head Yakub Bobat says: “Speaking to customers, we understand that having access to shariah-compliant products is crucial to the expansion and development of the business. People clearly want their business to grow, and if we can provide shariah-compliant products that meet their needs, that will satisfy a large part of the market in the region.”
According to an HSBC study, there is a need for Islamic finance in the Middle East, with the biggest demand coming from 62% of Saudi Arabian companies.
However, the figure drops dramatically outside of Saudi Arabia, with only 24% of those in the UAE, 19% in Qatar and 13% in Egypt saying that they need Islamic financing.
Reader Comments