Makkah: The Islamic Corporation for the Development of the Private Sector (ICD) has increased its stake in PMB Tijari Sdn. Bhd. to 33% in order to expand its business into the Shariah-compliant leasing industry in Malaysia, said the Group Chief Executive Officer (CEO) of Pelaburan MARA Bhd. (PMB), Nazim Rahman.

“This increase in equity reflects ICD's confidence in the success that will be achieved through the partnership, and in Malaysia's economic growth, considering that PMB Tijari’s success as a financial services company is closely linked to the growth of Malaysia's private sector. When PMB acquired PMB Tijari in January this year, ICD's stake was only 10%,” said Nazim, adding that the newly rebranded PMB financial services division was previously known as KFH Ijarah House (Malaysia) Sdn. Bhd.

“The institutional support provided by PMB and ICD will enable PMB Tijari to expand beyond the domestic market, and we hope to leverage the resources of both parties to achieve this objective,” he told Bernama. ICD is a multilateral organization and part of the Islamic Development Bank (IDB) Group, while PMB is a full subsidiary of Majlis Amanah Rakyat (MARA). PMB and ICD signed a shareholders’ agreement for the newly rebranded PMB Tijari at the conclusion of the IDB Group Board of Governors’ Annual Meeting in Jeddah last Thursday.

At the signing ceremony, ICD was represented by its CEO, Khaled Al-Aboodi, who stated that Malaysia is a key partner and ICD hopes to enhance cooperation with both the Malaysian government and the private sector. Khaled added that, in addition to direct equity investment in the joint venture company, ICD will also bring its affiliate, Bahrain-based global leasing technical partner, Ijarah Management Company (IMC), to provide the technical support and tools needed for PMB Tijari.

Besides Malaysia, IMC, established in 2011, 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, he said. Meanwhile, PMB Tijari CEO Tengku Ahmad Badli Shah Raja Hussin stated that the company specializes in the commercial sector of Shariah-compliant financial services, such as leasing, business financing, and vehicle financing.

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