(MENAFN- The Peninsula) QNB Capital (QNBC) and Qatar International Islamic Bank (QIIB) yesterday singed a Memorandum of Understanding (MoU) with a Chinese brokerage firm 'Southwest Securities' (SWSC) to establish a joint venture company for handling Shari'ah compliant financial services in China.
The SWSC is the only national securities corporation registered in China's Chongqing province, and the region's first listed financial institution.
The Qatari financial institutions are looking forward to introduce interest-free financial activities, including retail banking services in China to exploit the country's untapped potential. China with over 20 million Muslim population has very little Islamic financial products.
"The MoU will pave way for further cooperation among QIIB, QNBC and SWSC to establish Islamic financial instruments and direct Islamic investments in China," said Abdulbasit Ahmad Al Shaibei, CEO of QIIB, adding, "this will also help us to explore Shari'ah compliant investment opportunities in the world's second largest economy."
Al Shaibei, speaking to The Peninsula on the sidelines of the launching ceremony of Middle East's first Renminbi (RMB) clearing centre, said: "We are looking forward to signing agreements with them to start the framework to introduce the instruments of Islamic finance and banking in China."
Asked about the scope of retail banking and other areas of cooperation, he said that in China there are huge investment opportunities, both for direct investment or issuing sukuk (Islamic bond) and other financial activities.
"Yes, we have intention to start Shari;ah compliant retail banking in China. It's a very huge country with a lot of untapped market potential. But we want to be selective in areas to serve so that we can add value," he added.
"This is just the kick-off, and in a month's time we hope to sign agreements. As the Qatar Central Bank (QCB) is encouraging a kind of understanding with the Chinese side for Qatari banks to have presence in the Asia's largest economy."
The joint venture also aims to develop Islamic finance in China and support SWSC in accessing markets in Qatar and the Middle East region. However, Al Shaibei did not provide further details of the size of the company and the expected date of opening.
The MoU was singed by Cui Jian, Chairman of the Board of SWSC, and Secretary of the Party Committee; Dr Asim Qureshi, Managing Director at QNBC; and AI Shaibei of QIIB.
The Minister of Finance,
H E Ali Sherif Al Emadi and the Governor of QCB, H E Sheikh Abdullah bin Saoud AI Thani, witnessed the signing ceremony held during the inauguration of the Renminbi clearing centre.
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