Institution Equity

The Banking Equities

The last two decades have witnessed the rapid growth of Islamic banking around the world, both in volume and numbers. Islamic banking has established itself as an emerging alternative to interest-based banking and is taking root in both Muslim and non-Muslim countries. Islamic banks operate in over sixty countries, most of them in the Middle East and Asia. The Banking Equities Division under the Financial institutions development department was launched to complement the ICD strategy of strengthening the private sector and improving the effectiveness of ICD’s private sector development initiatives through the development of Islamic Finance “channels” or institutions. The aim of strengthening Islamic financial institutions is to ensure that financing or capital reaches the highest number of beneficiaries, defined as SMEs and corporates with sustainable businesses or projects, respectively.

As a leading Islamic Equity Finance provider, the Banking Equities Division of the ICD helps support the Islamic Banking Industry through equity participation. Its extensive transaction experience and knowledge of the Islamic Banking Industry allow it to provide differentiated, value-added insights, and investments to our member countries looking to expand their Islamic banking industry. ICD’s current portfolio stands at about US$112Mln spread across seven investments in over 10 member countries.


The Non-Banking Financial Equities

Over the past decade, and in particular after the most recent financial crisis, the Non-Banking Financial Institutions (NBFIs) sector  of our Member Countries has grown in importance as reflected in its strong increase in size and growing interconnectedness with the banking sector in specific and with the overall financial system in general. Non-Banking Financial Institutions (NBFIs) play a significant role in meeting the diverse financial needs of various sectors of an economy and thus contribute to the economic development of the country. These institutions play a very important role in meeting the credit gap thereby enhancing financial access to a greater part of society.

As a result, the Non-Banking Equities Division was set-up to create and/or develop Non-Banking Islamic Financial Institutions or “channels” to cater for the specific developmental needs of member countries and in full compliance with ICD’s strategic direction.  The division's goal is to assist and improve access to finance for the private sector in member countries to maximize benefits and create sustainable development impact and achieve optimal financial returns. Our main objective is to reach the majority of our end clients within our member countries through an appropriate mode of intervention via a financial channel targeting SMEs and retail sectors.  These companies must act as a suitable channel that can be able play an important role and cause positive multiplier effect in the socio-economic development of our member countries by directly engaging the private sector. Consequently, the NBFI division does this by launching Ijarah (leasing), Mortgage, Investment and Specialized Companies that tailor to the needs of our member countries. 

Our current portfolio stands roughly  at about US$102mm spread across 21 investments in over 12 member countries. Our Ijarah business is valued at US$44.1mm while the remaining $57.8mm is invested in mortgage, investment and specialized companies.  Overall, the Non-Banking Financial Equities play an important role within the financial system of our Member Countries due to the diversity and flexibility of the services offered. NBFIs embrace a variety of institutions they have one common purpose, to intermediate funds between surplus economic units and those in deficit. Thus, they complement the the overall financial system, by providing liquidity and access to finance to Small and Medium Enterprises. NBFIs help to create jobs and provide financial stability while helping to enhance the development of a sound financial structure and promote investment.