Malaysia and UAE tie up to boost economic ties, Islamic finance
KUALA LUMPUR (Reuters) - The central banks of Malaysia and the United Arab Emirates signed a pact on to foster closer economic ties between the two countries, including in the area of Islamic finance.
The pact, signed on Friday, signals stronger cooperation between the two financial hubs, which held a combined $181 billion (S$226 billion) in sharia-compliant banking assets as of 2011, despite growing competition for a share of Islamic business.
Governors of both central banks signed the memorandum of understanding on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington.
It follows stronger cooperation between the Islamic finance centres, in particular the Gulf and Southeast Asian regions, despite traditional differences in the design and implementation of sharia-compliant financial products.