Malaysia sets aside $1.7b for Islamic speculation 

(MENAFN - Kuwait News Agency (KUNA)) The Malaysian government is setting aside a sum of USD 1.72 billion for the Sharia-compliant venture capital sector, in a bid to boost global Islamic financing, a top official told KUNA Wednesday.

Deputy Finance Minister Awang Adek Hussin said there is constant growth in international interest in Islamic investment, and particular rise in demand for Islamic Sukouk.

The sectors of speculation capital and property funds are by now main sectors and vital components of the Islamic finance and trade system, he added.

Addressing the opening session of the 2nd Islamic Venture Capital and Private Equity Conference, the official had said the government was pinning much hope on results of this gathering to further boost this sector. He said Islamic financing proved very vital for Malaysia recently when it bridged the gaps in the fields of bank loans and stocks.

The government contributed 48 percent of overall financing in this sector in 2008, and is exerting diverse efforts to bolster Malaysia's status as an Islamic financing center.

Malaysia hosted the first global conference in 2008 under the theme of "Fostering Alternative Investment: Emerging Trends and Key Opportunities." This time around, the theme is "Rooting Islamic Investments and Strategic Funds in Light of the Economic Crisis." The two-day conference will be focusing on Islamic finance and its important role in socio and economic development for Islamic countries. More than 30 speakers are to address the conferees representing major regional and international Islamic finance bodies.

By Abdullah Bugis