He was addressing a virtual roundtable discussion on “Sukuk Bond: A new frontier for financing instrument in Bangladesh” organized by Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) and City Bank Capital on Tuesday.
Speaking as the chief guest, Salman said the treasury bonds will be listed very soon and a huge number of bonds are coming and being listed into the market.
"Lots of corporate houses are also looking at the different."
He mentioned that the roundtable was very timely initiative by Bangladesh-Malaysia Chamber of Commerce to bring out the discussion on Sukuk.
There is a huge demand, requirement and acceptance of Islamic Financing in Bangladesh as we are a country with majority population who are Muslim.
He said the government is also looking and reforming at the Bankruptcy Law, Company Act etc.
The laws are being amended, being reviewed and new laws are being framed.
"Hence, this is the right time to take initiatives on how to bring Islamic Financing and Sukuk in the market," he said requesting the chambers share suggestions especially after learning from the Malaysian experience.
Islamic finance has been one of the prominent phenomena since the last decade in the Middle East and South-East Asia especially in the banking industry.
However, Bangladesh has never fully leveraged the Islamic financing scene; neither in the conventional Islamic Banking, nor the Islamic debt securities market.
High Commissioner of Malaysia to Bangladesh Haznah Md Hashim expressed her utmost appreciation and congratulate the government of Bangladesh, particularly City Bank Capital and Bangladesh-Malaysia Chambers of Commerce and Industry (BMCCI) for successfully hosting this timely roundtable discussion.
She said Malaysia has been rising as global leader in Islamic banking and finance for several decades and maintained its position as the world's top issuer of sukuk loans.
Sukuk issuance can create opportunities for investors from Malaysia to look into Bangladesh as another potential investment destination.
"Amid the backdrop of ongoing uncertainties, we need to strengthen bilateral collaboration. Despite the challenges of COVID-19, Malaysia-Bangladesh relations under the auspicious leadership of Prime Minister Muhyiddin Yassin and Prime Minister of Bangladesh Sheikh Hasina, continue to strengthen as the leaders continue to engage under the parameters of the new normal," said the High Commissioner.
Raquib Mohammad Fakhrul (Rocky), President of Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) chaired the roundtable discussion.
He mentioned that Sukuk is becoming an important asset class for investors from both conventional and Islamic backgrounds.
"By the same token, it is also attracting the attention of sovereign, multilateral and corporate issuers worldwide. But, Bangladesh being one of the largest Islamic nations is yet to develop a Sukuk market."
To fulfill the realistic aspiration of becoming an upper-middle-income country by 2031, according to the suggestion by World Bank, Bangladesh needs an investment of about $300 Billion for infrastructural development, according to BMCCI.
Numerous infrastructure development projects around the world, especially in Malaysia, the Gulf and in Africa has been successfully financed through Sukuk. Accommodating Sukuk as a source of project finance in Bangladesh might turn out as a game-changer.
The keynote paper on “Sukuk Bond: A new frontier for financing instrument in Bangladesh” was presented by Ershad Hossain, Managing Director and CEO of City Bank Capital and he also acted as the moderator of the sessions in the roundtable.
Dr. Hamim Syahrum bin Ahmad Mokhtar, Deputy Director, Islamic Banking and Takaful Department, Bank Negara Malaysia presented a paper on “Islamic Finance in Malaysia” followed by paper presentation on “Role of Regulators in Developing Sukuk Market, Laws and Process” by Noraizat Shik Ahmad, General Manager of the Islamic Capital Market Department, Securities Commission Malaysia.
As opinion leaders of the session, Md. Ashadul Islam, Senior Secretary, Financial Institutions Division, Bangladesh and Professor Shibli Rubayat Ul Islam, Chairman, Bangladesh Securities Exchange Commission (BSEC) and Ikbal Daredia, Advisor to CEO & Director, Global Markets and Fixed Income (GMFI) and Treasury, ICD were present and they shared their valuable ideas on Sukuk bond.
In the second session of the roundtable, Mohd Radzuan Ahmad Tajuddin, Panel Consultant on Islamic Finance, ZICO Shariah & Advisory, Project Consultant, ISRA Consultancy presented a paper on “Challenges and Possible Barriers that could rise to establish Sukuk in Bangladesh, key players and current regulation Of Sukuk In Malaysia”.
Abu Bakar Chowdhury, CFO, Asma Capital, Nishant Kumar, Managing Director, Asia, GuarantCo, Mashrur Arefin, MD, City Bank Limited and Barrister Tanjib-ul Alam, Head of Chamber, Tanjib Alam and Associates participated this session as the panel speakers and share their ideas and recommended suggestions for attracting investment in Bangladesh through Sukuk Bond.
Md. Anwar Shahid, Vice-President, BMCCI and Convener of Trade & Investment, Steering Committee also spoke.