Westpac trade deal courts Islamic investors

Last updated 05:00 13/02/2010

Relevant offers

Latest business

Troubled property developer Augustine Lau taken to court for toilets emptying into stream Budget Buster: Why are we donating millions to the taxman? Beer labels featuring cute cartoons appeal to minors, Alcohol Healthwatch says Opportunist builders, dodgy steel and shonky standards create new building crisis 'worse than leaky homes' Backlog of defective buildings and shoddy workmanship sparks calls for building warranties Retirement commissioner Diane Maxwell has another go at pushing for age raise Court action on 'shonky' steel mesh creates pressure for government inquiry Industrial players work with clients to deliver bespoke factories Siblings fight over millions in farming family stoush Female lawyers charge-out rates lag behind their male colleagues

Westpac is poised to bolster its exposure to the fast-growing Islamic finance market by offering a commodity-trading facility aimed at overseas investors that operates under the principles of Islamic law.

Islamic finance prohibits the earning of interest. Instead, there is a focus on profit-sharing based on buying and selling tangible assets such as property.

The move by Westpac coincides with an Australian federal government attempt to promote involvement in Islamic financing.

The Trade Minister, Simon Crean, launched a study outlining opportunities for the financial services sector to tap into the sharia-compliant investment and banking markets.

It follows the recommendation last month by a government-backed finance taskforce to overhaul tax rules to ensure Islamic financing products receive equal treatment.

The Australian Financial Centre Forum, which released a broader report into the nation's finance sector, highlighted Islamic financing as a potential funding source for the nation's banks.

The market for Islamic financial services has grown rapidly in recent years, and is estimated to be close to $1 trillion.

Ad Feedback

- Sydney Morning Herald

Special offers

Featured Promotions

Sponsored Content