cimb-launches-islamic-product-in-hong-kong

CIMB launches Islamic product in Hong Kong

The Murabahah-based product allows for the opening of an Islamic interbank money market in the city.

Edward Russell

November 26, 2008

CIMB Islamic yesterday launched a Commodity Murabahah Deposit product in Hong Kong, which will be available through the Hong Kong branch of its affiliate CIMB Bank. The move expands Hong KongÆs nascent Islamic banking sector and allows for the opening of an Islamic interbank money market in the city.

The product is based on Shar'iah principles that forbid the charging of interest as well as investments in prohibited activities such as liquor and gambling enterprises. It will be backed by commodities, including palm oil and different metals.

A Murabahah product offers investors fixed returns through the prior statement of costs by the seller or bank.

CIMB IslamicÆs product launch in Hong Kong is part of...

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