Mitsubishi UFJ Financial Group’s banking arm, the Bank of Tokyo-Mitsubishi UFJ (BTMU) has launched its Islamic finance business in Dubai to tap vast pools of liquidity in southeast Asia and the Gulf.
Islamic windows allow conventional banks to conduct Islamic finance by segregating assets from conventional interest-bearing funds.
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The newly launched unit intends to offer wide range Islamic products including deposits, loans and trade finance solutions.
The bank’s new Islamic window will provide Islamic finance solutions for its existing customers and new customers across Europe, Middle East and Africa (EMEA) from its Dubai International Financial Centre (DIFC) branch.
BTMU regional head for the Middle East Shichito Tobari said that the bank will initially target commercial loans and trade finance equivalent services, leveraging its existing client base of government-related entities.
"Our goal is to extend financial on a box by box basis and attend in syndications, adding that BTMU could extend between $50 million to $200 million in financing as part of those transactions.
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By GlobalData"The next step is to expand the product line to ijara and istisna. The first half of 2016 is a target to deliver this," Tobari added.
In 2008 it became the first Japanese bank to offer Islamic finance products and services in Malaysia.
