world’s top shariah product team absorbed by the bmb group
The award-winning Shariah consulting and product design team of Dar Al Istithmar (a majority-held subsidiary of Deutsche Bank) announced today that it has been absorbed by the BMB Group to create BMB Islamic, a full service, Islamic-focused product design and placement institution.
The BMB Group, whose holding company is an offshore company in Brunei, is an Islamic asset management and financial advisory firm (a broad-based, commercial multi-family office with asset management, oil and gas and financial advisory capabilities) with growing operations in the GCC, Europe and Asia.
Through its aggressive multiple investment strategies, BMB has established a significant local presence in the GCC and ASEAN in the last eighteen months and is rapidly expanding into the wider OIC sphere. Through its unique investment platform, BMB is currently engaged in a $5 billion deployment across the alternative asset spectrum and is exploiting diverse investment opportunities through its core businesses of asset management, hydrocarbons and real estate, developing strategic relationships throughout the Islamic world.
The team’s significant move from Dar Al Istithmar will strengthen BMB’s leadership in innovative Islamic financial technology and create what many believe will be the world’s leading product design team capable of working with market-leading western and Islamic financial institutions.
Led by internationally renowned Islamic economist Dr. Humayon Dar, the team is noted for its combination of distinguished Shariah product engineers and the most respected Shariah Supervisory Committee in the industry. Under Dr. Dar’s leadership, the team has advised several international governmental and private organizations on Shariah banking and finance. The team has also provided extensive training and support for the senior management of several Islamic Banks. It is estimated that the team advised in the set up of over $20 billion in product volume.
Dr. Dar remarked, “Shariah has become a buzz word in financial circles. Although misused and generally misunderstood, it is a high profile concept at a time when the Islamic financial services industry is moving towards greater legitimacy. Although we have been fortunate enough to have had associations with an outstanding institution such as Deutsche Bank, one hears ‘Shariah-compliance’ used by many other parties whose motivations are less than sincere and could be described as disingenuous.
“In our opinion, BMB is the first truly non partisan convergence of both financial and Islamic credibility in a structure that is designed to meet the needs of the Islamic market.”
He added, “The Islamic financial services industry is being dominated by conventional banks that are eager to capture the Islamic market but without necessarily having access to truly authentic Shariah advice”.
Winners of the Euromoney Award for Best Islamic Advisory Assurance Service in 2006 and Best Islamic Advisory Service in 2007, the team will also help to enhance BMB’s position as the leading provider of financial advisory services to Islamic financial institutions. Currently, the industry is struggling to keep pace with the rapidly growing demand for new Shariah-compliant products, financing vehicles and services.
BMB Islamic’s areas of focus will include organizational development as well as support in the structuring and introduction of products that are not only commercially viable, but ones that also adhere to the highest Shariah standards. These services will both help to strengthen the profitability of Islamic financial institutions whilst also contributing to the industry’s further growth and ability to provide Muslims and non-Muslims alike with the real benefits of well engineered Islamic financial instruments.
Johari Salleh, Group Controller, BMB Group said: “The BMB Islamic team will help realize BMB’s goal of matching the world’s best financial expertise with true Islamic credibility, in a structure that is owned by Muslims.”
As a broad-based Islamic finance firm, BMB continues to develop some of the most innovative and sophisticated Shariah-compliant products in the industry and is currently preparing these new products for world-wide distribution. With the addition of this internationally recognized team, BMB will be a potent force in the Islamic financial services industry.
BMB both structures products for Shariah investors and also invests its own capital in these products. Mr. Salleh added: “BMB is driven by the belief that it is not sufficient to structure Islamic products if they are not commercially viable for devoted Muslims. BMB therefore invests in its own products to emphasize their financial excellence and Islamic credibility.”
Commenting on the announcement, Dr. Dar remarked, “Islamic banking and finance is indeed becoming a truly global phenomenon fueled by unprecedented demand for Shariah-compliant products. While this has had a positive impact on the industry, driving greater international acceptance and legitimacy and supporting the emergence of hundreds of Islamic financial institutions, such rapid growth has also posed critical challenges.
Dr. Dar continued, “With this in mind, we are delighted to join forces with BMB, which we view as an organization truly committed to achieving financial and Islamic convergence. Together we can act as an unsurpassed resource for industry players seeking to develop products that further enhance the integrity of the industry whilst also allowing for the creation of instruments that are attractive and tradable in the wider financial markets. Working within BMB, we believe we are now better placed to make a positive impact on the industry and work with a broader group of institutions to develop genuinely credible and independent Shariah platforms.”
