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JANUARY-FEBRUARY. 2020 | @Halal
When we were setting up Maybank Islamic Dubai DIFC
Branch, we spoke to the other banks there about the
model we are going to use. It is a collaborative model
that would fi ll in the gaps rather than to compete
directly with their services.”
strengthen our presence in neighbouring
countries such as Indonesia and Singapore
so that we are able to represent ASEAN and
take it to another level.”
Th e Dubai International
Financial Centre is where
Maybank Islamic Banking
Dubai is located, bridging the
gap between the GCC and
ASEAN.
THE GATEWAY BETWEEN
THE GCC AND ASEAN
Steps for the Maybank Group to grow its
Islamic banking operations in the Gulf Coop-
eration Countries (GCC) began even before
Dubai when it opened a branch in Bahrain
in 2004. Before the closure of Bahrain at the
end of 2018, the management of Maybank
Islamic had already begun to re-assess May-
bank’s presence in the GCC and “found that
the true hub for Islamic fi nance within the
GCC is in the United Arab Emirates, specifi -
cally Dubai.”
The branch in Dubai is located within the
Dubai Financial Services Industry (DIFC)- a
special economic zone in Dubai which is also
the fi nancial hub for the Middle East, Africa
and South Asia (MEASA) markets.
With the setting up of the Dubai DIFC
branch since July 2019, Maybank Islamic is
now Malaysia’s fi rst Islamic bank to have a
foreign presence. Maybank Islamic Dubai
DIFC Branch will engage in wholesale bank-
ing with emphasis in corporate fi nancing,
treasury and capital markets and trade
fi nance.
“We looked at several locations, and found
the true hub for Islamic fi nance within the
GCC is in the United Arab Emirates, specifi -
cally Dubai.
“This is based on the infrastructure, talent
and resources present in the city as well what
the city has achieved.”
The strategy is a straight forward one, to
be the linking medium between ASEAN and
the GCC. But why?
Rafi que says: “The intra-OIC (Organisation
of Islamic Cooperation) trade is a sizeable
market we can be a part of, hence the opening
of our doors in Dubai.”
A COLLABORATIVE MODEL
Maybank Islamic’s reason for their expansion
is never to become the biggest Islamic fi nance
provider in various countries. Although they
are the largest in Malaysia, it is unrealistic to
be the largest in other countries as well.
Rafique explains: “We need to be fully
aware of our capabilities. In terms of setting
the pace for our progress, there is a need to do
it on a more measured basis.
“When we were setting up Maybank
Islamic Dubai DIFC Branch, we spoke to the
other banks there about the model we are
going to use. It is a collaborative model that
would fi ll in the gaps rather than to compete
directly with their services.”
This means that Maybank Islamic wants
to provide the people in Dubai services that
don’t exist in other banks, and also to work
with the local banks there in providing the
services they don’t have in ASEAN.
“Additionally, if they wanted access to
customers in ASEAN, we should be the link
as we are representing Islamic fi nance all 10
ASEAN countries where Maybank Group is
present,” Rafi que adds.
GOLDEN OPPORTUNITY
“I believe in assessing our own capabilities to
provide the best service to our customers in a
transparent and fair way.
“And with that, to provide the same level of
MEASURED MILEAGE: Rafi que
tells how Maybank Islamic Banking
has taken measured steps in
expanding to Dubai, as they believe in
assessing their capabilities to match
their ascension to be the best way
forward.
Th e challenges
ahead
IT SEEMS smooth sailing the way
Maybank Islamic is advancing
towards the GCC (Gulf Cooperation
Council) and ASEAN, for that matter.
As with any type of business
expansion, challenges are always
present.
When asked about the possible
challenges Maybank Islamic is facing
now that they are operating in Dubai
International Financial Centr e (DIFC),
Group CEO of Maybank Islamic
Banking and Maybank Islamic CEO
Dato' Mohamed Rafi que Merican
had this to say: “Th ere will be many
challenges to face, and it will come in
many forms.
“Are we aware of all the possible
challenges lying ahead? Perhaps not,
because we have been anticipating
challenges by comparing ourselves
with other banks when it comes to
our local business.
“However, when in Dubai,
challenges may not just come from
other banks per se. It may be in the
form of political disputes, business-
related challenges and so on. ”
So how do they equip themselves
with facing unforeseen challenges?
Rafi que stresses upon
understanding how the industry
works fi rst before making a move to
penetrate the market.
He says: “Th ere is no point in
reinventing ourselves to meet the
market if we don’t fully commit in
understanding the market itself
fi rst,
“We communicated with
other banks in the region,
understanding their challenges
and measuring our own abilities
to possibly handle them.
“It goes back to how we are
taking measured steps in
expanding into new territories.
We always
make an assessment
ofourselves fi rst before taking
the next leap forward.”