Tatarstan International Investment Company (TIIC), one of the first investment company in Russia sticking with Shari'ah (the Islamic system of law based on Qur’an), will start the activity by the end of the first quarter of 2010.
Tatarstan International Investment Company (TIIC), one of the first investment company in Russia sticking with Shari'ah (the Islamic system of law based on Qur’an), will start the activity by the end of the first quarter of 2010.
The nominal capital is about $3 million , as RIA-news reports with reference to Linar Yakupov, one of the company’s establisher.
According to his words about 60% of money is planned to be invested in the projects on the territory of Tatarstan, 40% - on other regions of Russian Federation.
L. Yakupov specified that the company would work as the closed joint-stock company, but yet hasn’t obtained a banking license of Central Bank.
The shareholders of TIIC are basically investors from Islamic countries (particularly, from the countries of Persian Gulf and North Africa), Islamic Development Bank and
state companies of Tatarstan.
L. Yakupov informed that CEO and the chairman of the board of directors to be selected at the end of January,2010. He didn’t say the names of applicants for this positions.
The main principles of Islamic banking are prohibition on usury, exclusion of superfluous uncertainty, profiteering in solid asset-based financing, investing only those transactions which doesn’t contravene Islam regulations (the financing of gambling games, alcohol and tobacco production). Particularly, in Islamic banking the investor is supposed not to receive interest for issued capital. He becomes the participant of business of financed company, and makes profit. After a while the investor may go out of the capital.
Islamic finance instruments may be used by any businessman no matter of religion
In analysts’ judgment extensively developing market of Islamic financing is mentioned to be one of the most perspective. Particularly, the group VTB considers this market as the important source for own eventual founding. For some months “VTB Capital”, investment arm of VTB, has prepared Islamic bond (sukuk) issues.
According to L. Yakupov, the situation with Dubai World won’t influence on market conditions of Islamic banking. The amount of borrowed finance of the company is about 5% from all debts.
Tatarstan International Investment Company to invest in not only current companies and projects, but also in new ones. The capital may be allowed for 3-5 years.
During first few years it is planned to invest about $500 million. L. Yakupov made a proviso that however these sums could be changed just as upwards so downwards.
The company expects reaching breakeven during 3-5 years.
Islamic-Finance.ru according to Banki.ru
Contacts |
Русский
