finance islamique BMB Group
The BMB Group chosen to run one of the largest charitable initiatives from the Islamic worldThe International Zakat Organisation (“IZO”), an important new charitable body of the Organisation of Islamic Conference (“OIC”), has selected The BMB Group to lead a new global charitable initiative which promises to be the largest in the Islamic world. The proposed Global Zakat and Charity Fund will manage charitable funds to address needy causes in the world and aims to raise US$750 million within the first year which will increase to over US$3 billion once commitments are realised.
Mr. Mat Hassan Esa, Managing Director and CEO of IZO, commented: "This announcement is extremely timely as the world confronts one of the worst financial crises in decades. It is also highly significant as it is the first time the OIC, which is the equivalent of the United Nations for Islamic countries, has agreed on a common initiative for the global distribution of Zakat or charitable money that is one of the cornerstones of Islam. What will be surprising to many is that this investment is not restricted to Muslim countries.
“The Fund will act as a rallying call for wealthy Islamic countries to help needy communities all around the world. Effectively administered Zakat is a tool that can contribute to alleviating poverty not only from Muslim countries but from the entire world.”
Many of the fifty-seven members of the OIC have already committed themselves to IZO and its initiatives. The Fund will invest in community development projects with an emphasis on sustainability. The four major areas to be targeted are:
(1) Income generation through the provision of Private Equity finance to small and medium enterprises
(2) Development of social enterprise through the establishment of hospitals, educational institutions and housing developments
(3) Development of agricultural and other vital infrastructure and;
(4) The provision of relief and emergency funding.
The Fund will also co-operate with western government and institutions to approach jointly problem areas. The Fund will be run on a professional asset management basis. The BMB Group will manage the investments while IZO will serve an advisory role to ensure that the investments remain in line with the objectives and principles of Zakat. A new fund management company will be set up to manage the Fund and is likely to be based in Kuala Lumpur. Both The BMB Group and IZO will work jointly to raise the money from the member countries of the OIC.
The Chairman of The BMB Group, YAM Prince Abdul Ali Yil Kabier, commented: “The BMB Group’s lead role in this initiative reinforces our sincere commitment to the global community. At this juncture in history, where the world faces serious economic challenges, it is imperative for Muslims around the world to unite for the common good, working to alleviate the social, economic and environmental challenges that face the global community.”
Dr Humayon Dar, a prominent Islamic scholar and CEO of BMB Islamic, added: "The Fund will invest along an agenda determined by social responsibility that requires every person to help their neighbour. We are also engaging in the highest level of due diligence and governance to ensure that the deployment of our funds do not advance the causes of organisations that do not promote peace and tolerance."
The BMB Group, which was founded by Rayo Withanage, has rapidly become one of the most prestigious investment houses to emerge from the Islamic World, with over US$10 billion in assets under management. The firm has positioned itself as an institution that marries western and eastern investment capabilities. The BMB Group retains what is widely regarded as the strongest Islamic products structuring team in the world. The BMB Group recently acquired the Washington DC based Private Equity veteran EMP Global, headed by former World Bank Senior Vice President Moeen Qureshi, which successfully invested over $7Billion in emerging markets around the world. The BMB Group’s participation in the IZO fund is the Group’s first association with an international non profit organisation.