The HSBC Group is concentrating more in Malaysia and Saudi Arabia and less in Indonesia in its Islamic finance offering to customers.
This is brought by a strategic review of its Islamic finance business to drive growth and improve returns on investment by restructuring or exiting businesses that do not meet its investment criteria.
However, HSBC will continue to offer wholesale Islamic financing/Sukuk products to its global client base through its operations in Malaysia and Saudi Arabia.
Following the restructuring, HSBC will retain 83% of the Group's Islamic business revenues.
In Saudi Arabia, Islamic financial products will be offered through The Saudi British Bank (SABB), in which HSBC Holdings plc indirectly holds a 40% shareholding. HSBC Saudi Arabia Limited, in which HSBC Holdings plc indirectly holds a 49% shareholding, will offer Islamic investments and wholesale Islamic financing/Sukuk products to customers globally. HSBC is the market leader in Sukuk issuance.
Moreover, the HSBC Group will stop offering Shari'ah compliant products and services in the UK, the UAE, Bahrain, Bangladesh, Singapore and Mauritius, with the exception of wholesale Islamic financing/Sukuk products that will continue to be offered in these jurisdictions and globally through HSBC Saudi Arabia Limited.
Do you know more about this story? Contact us anonymously through this link.