The Islamic Corporation for the Development of the Private Sector (ICD) has increased its equity stake in PMB Tijari Sdn Bhd, a financial services arm of Pelaburan MARA Bhd (PMB), to 33%. This move is part of ICD’s efforts to expand its business by venturing into Shariah-compliant leasing in Malaysia.

PMB Group CEO, Nazim Rahman, said that the equity increase reflects ICD’s confidence in the potential for collaboration and economic growth in Malaysia. It also takes into account PMB Tijari’s success as a financial services company closely linked to the growth of the private sector in Malaysia.

“The institutional support provided by PMB and ICD will enable PMB Tijari to expand beyond the local market, and we hope to leverage the resources of both parties to achieve this goal,” he said in a statement yesterday. When PMB acquired PMB Tijari in January of this year, ICD’s stake was just 10%. The newly rebranded financial services arm, PMB Tijari, was previously known as KFH Ijarah House (Malaysia) Sdn. Bhd.

ICD is a multilateral institution and part of the Islamic Development Bank (IDB), while PMB is a fully-owned investment and asset management company of the Majlis Amanah Rakyat (MARA).

PMB and ICD signed a shareholders' agreement at the IDB Group’s Annual Board of Governors Meeting in Jeddah last Thursday. ICD was represented by its CEO, Khaled Al-Aboodi. Khaled had previously stated that Malaysia is a key partner, and ICD looks forward to enhancing cooperation with both government and private sectors.

He added that, in addition to direct equity investment in the joint venture company, ICD will bring in its affiliate, Ijarah Management Company (IMC), a global leasing technical partner based in Bahrain, to provide technical support and tools needed for PMB Tijari. Established in 2011, IMC operates more than seven leasing companies worldwide, including in the Commonwealth of Independent States (CIS), the Middle East and North Africa (MENA), and West Africa.

Meanwhile, PMB Tijari CEO Tengku Ahmad Badli Shah Raja Hussin said the company specializes in the commercial sector of Islamic financial services, offering Shariah-compliant financial solutions such as leasing, business financing, and vehicle financing.

“PMB Tijari is ready to offer the most competitive and innovative Shariah-compliant financing services in the industry,” he said.