Use sovereign funds to invest in syariah-compliant products: Regent

MUSLIM countries should allocate a fraction of their sovereign funds to financial institutions which have the expertise to invest in syariah-compliant investment funds and instruments.
Perak Regent Raja Dr Nazrin Shah said one of the driving forces for Islamic finance to prosper is for large investment organisations such as sovereign wealth funds of Muslim countries to take a developmental view when determining their asset allocations.
Initiatives such as the commodity trading paltform Bursa Suq Al-Sila can be utilised to facilitate liquidity management of Islamic financial instituions.
Saudi Arabia's Al Rajhi Bank and Cagamas Bhd also collaborated to issue an innovative sukuk which aims to meet the syariah demands of investors in the Middle East as well as in Asia.