UAE-based banking group Emirates NBD is planning to set up a new Islamic banking subsidiary in Indonesia to tap underdeveloped financial sector in the world’s most populated Muslim-majority country.

Indonesian laws restricts foreign ownership in local banks to 40% and also requires minimal capital of IDR1 trillion ($69.44m) for the establishment of an Islamic bank.

Emirates NDB may partner with local partners in order to meet the current government regulation, head of Islamic banking at the Financial Services Authority (OJK) Achmad Buchori told reporters.

The UAE lender would be able to fulfill their plans by next year, if it is serious of its intentions, Buchori added.

Emirates NBD, established in 2007, opened an office in Jakarta as an extension of its regional branch office in Singapore couple of years ago.

Emirates NBD has $105.6bn in its total assets and operates 220 branches globally, according to the bank’s latest financial report.