Khazanah invests US$150m in Fajr

Khazanah invests US$150m in Fajr
Published: 2009/10/07

Khazanah Nasional's purchase of a 25 per cent stake in the Dubai-based Islamic investment firm is aimed at building cross-linkages between Malaysia and key Muslim markets


Khazanah Nasional Bhd has invested US$150 million (RM516 million) in the Dubai-based Islamic investment firm, Fajr Capital Ltd.

The state-owned investment fund's purchase of a 25 per cent stake in Fajr represents the government's participation in building cross-linkages between Malaysia and key Muslim markets, Khazanah managing director Tan Sri Azman Mokhtar said in a statement issued in Kuala Lumpur yesterday.

Khazanah's purchase concluded with the completion of its first round of funding with commitments amounting to US$588 million (RM2 billion), bringing together prominent shareholders from key Muslim markets.

Other strategic investors include private firm Masic (a member of Al-Subeaei Group of Saudi Arabia), sovereign investment agencies, the Brunei Investment Agency and the Abu Dhabi Investment Council.



Fajr provides syariah-compliant financial services and complementary opportunities in the broader economy in major Muslim regions.

Azman said Khazanah's purchase was also in support of aspirations of the Malaysian International Islamic Financial Centre (MIFC).

"Islamic financial services are a key priority for Malaysia and Khazanah's participation in Fajr reflects our commitment to this area," said Azman, who is also a director of Fajr.

"This partnership also embodies Malaysia's deepening links with the Middle East and broader Muslim world - regions that are important sources of capital and attractive markets for us to invest in."

Fajr intends to be an active and enabling investor in its portfolio companies, helping to optimise performance through best-in-class products, service standards, technologies and syariah expertise.

It has appointed independent syariah supervisors to ensure consistency with Islamic legal and ethical principles.

Fajr's management team consists of well-known professionals in the international Islamic finance industry, led by Iqbal Khan, who was the founding chief executive of HSBC Amanah - the global Islamic financial services division of the HSBC group.

Apart from its operations at the Dubai International Financial Centre, Fajr also has offices in Kuala Lumpur and London.