Oct 26 2011
|more articles from|
Malaysian PM backs growth of Islamic VC
At a recent symposium in Kuala Lumpur, PM Najib Razak [pictured] acknowledged that Islamic VC is still at an embryonic stage but that a greater awareness and understanding of Islamic finance itself could entice investors to risk their capital by investing in specific business opportunities.
Malaysia has been building its Islamic VC regulatory framework for some years now, releasing a 'Guidelines and Best Practices on Islamic Venture Capital' report in 2008. But growth is slow.
It is this mix of finance and business nous, as well as entrepreneurship that Zaid Hamzah, innovation lawyer and author of an upcoming book on Islamic VC and PE, also calls for. He told this paper: "'On the ground education' instead of MBA programs on entrepreneurship can make the critical difference. The future of the [Islamic VC] industry will depend less on structuring or Shari'ah compliance but more on creating the eco-system that will produce quality deals to secure optimal returns on investment."
The potential for Islamic VC, he says, sits well with the whole ethos of Shari'ah compliant investments and all industries bar the decisively Haram ones are ripe for the picking.
© The Islamic Globe 2011
© Copyright Zawya. All Rights Reserved.