BMB to raise RM10b to ease poverty in Islamic countries

BMB to raise RM10b to ease poverty in Islamic countries
By Sharen KaurPublished: 2009/02/21


ASSET management firm BMB Group Ltd wants to raise over RM10 billion in five years under a plan to alleviate poverty in Islamic countries.

This will be done under a global tithe and charity fund that will be managed by BMB Group, a global alternative assets manager, with offices in London, New York, Kuala Lumpur and the Middle East.

It sealed a deal to raise the funds and manage them in a signing with the International Zakat Organisation (IZO) in Kuala Lumpur on Wednesday.

Under the deal, BMB will pool together various sources of tithe collection and money, to build an initial fund size of RM2 billion by December, its chief executive officer for BMB Islamic, Dr Humayon Dar, said yesterday.

It also plans to tap some US$1.3 trillion (RM4.77 trillion) in unclaimed bank balances of inactive accounts of Muslims worldwide.

"We will primarily target banks in Muslim countries, before going to the western side. We will have to influence the banks and respective governments on the use of the money," Dar said.

Dar said BMB will also collect 2.5 per cent in zakat from high net-worth Muslim individuals, in addition to 2.5 per cent of profits made by Muslim-owned companies, worldwide.

Zakat is one of the five pillars of Islam. It is a mandatory levy on Muslims to give an obligatory amount of money to the less fortunate.

"In the past, the collection of this money has not been efficient. BMB has the expertise to manage various types of equities. We have strong investment capability and are confident of meeting the RM10 billion target," Dar said.

Dar was speaking to Business Times after signing an agreement with IZO chairman Datuk Ahmad Zahid Hamidi to establish the fund.

Ahmad Zahid, who is Minister in the Prime Minister's Department, said the fund will invest in community development projects with an emphasis on sustainability.

It will focus on three major areas namely providing affordable financing to small- and medium-sized enterprises; building hospitals, schools and houses; and provide relief and emergency funding.

The Organisation of the Islamic Conference (OIC) has 57 member states and some have committed themselves to IZO and its various initiatives.

"Zakat itself can raise billions of dollars. There is one Muslim country which has US$400 million (RM1.4 billion) in zakat. There are also many billionaire individuals in the Middle East. Collecting 2.5 per cent in zakat from each will help us to build the fund within the 5-year time frame," he said.