Japan enters Shariah-compliant corporate financing in Mideast

Bank of Tokyo-Mitsubishi UFJ (BTMU), through its newly established Dubai branch, has become the first Japanese lender to provide Shariah-compliant corporate financing through an overseas branch after respective regulations have been loosened by Japan’s Financial Services Agency last year. The bank said it is issuing a $200mn loan to a unit of Saudi Arabian national mining company Ma’aden. BTMU launched an overseas branch in October last year in the Dubai International Financial Center with an Islamic window after receiving permission from the Dubai Financial Services Authority. The bank is currently preparing a number of Islamic products with an initial focus on commercial loans and trade finance services.