The deal will explore opportunities between Mena and South East Asia and will bridge, in particular, the growing investment interests between the UAE and Indonesia, which were cemented through the UAE’s $10 billion commitment for Indonesia’s sovereign wealth fund (SWF).

 

The UAE has made significant strides to strengthen its ties with Indonesia, with the recent announcement of its intention to inject $10 billion into the Indonesian SWF at the directive of HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. 

 

This will result in UAE becoming the largest anchor investor in the Indonesian SWF.

 

The planned fund-raising activity in the Gulf equity markets signals a return of international business and investors’ confidence against the backdrop of the novel coronavirus pandemic, which dampened the number of IPO issuances in 2020 to 7 with $1.8 billion in proceeds from 12 in 2019 with $29 billion, which included the $25.6 billion from Saudi Aramco IPO, the world’s largest stock market debut.

 

The MoU highlights the synergies between the UAE and Indonesia, which are countries with strong Shariah-compliant financial markets, stated Lim Say Cheong, CEO of Lootah Global Capital after signing the deal with Salina Nordin, Founder & CEO of Heritage Amanah International. 

 

"The UAE provides an attractive environment with its well established and dynamic global financial centres, ideal geographical location in the centre of the Asian and Western financial markets, robust legal system and judiciary that is familiar with the Shariah principles, vibrant Islamic banking industry, a wide array of Sharia-compliant financial instruments and funds as well as Sharia Index, noted Cheong.

 

"The Lootah family name itself represents over six decades of pioneering economic and social activities in the UAE, including the founding of the region’s first Islamic Bank. With this kind of deeply-rooted expertise and dedication, we are pleased to partner with Heritage Amanah and continue Lootah’s legacy by creating value through innovation in Islamic finance and helping businesses pursue opportunities around the world with a particular focus on the GCC and Mena markets," he added.

 

Nordin said: "The recent announcement by UAE to invest $10bn into Indonesia’s SWF, INA, reinforces the efforts to build stronger economic ties between Middle East and South East Asia. Our collaborations will allow us to connect minds without boundaries by providing a platform of investment opportunities within the regions."

 

"Between Heritage Amanah’s deep understanding of the Indonesian business culture coupled with the Lootah Holding esteemed history, it will enable us to recognise and tap into promising global Shariah opportunities for strategic value creation," she noted.-TradeArabia News Service