As a result of a strategic review of its Islamic finance business, the HSBC Group ('HSBC') recently has announced that it will focus its Islamic finance offering on customers in Malaysia and Saudi Arabia, and maintain a limited presence in Indonesia.
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 per cent 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 per cent shareholding. HSBC Saudi Arabia Limited, in which HSBC Holdings plc indirectly holds a 49 per cent shareholding, will offer Islamic investments and wholesale Islamic financing/Sukuk products to customers globally. HSBC is the market leader in Sukuk issuance.
The Group will cease to offer 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.
"This announcement represents further progress in HSBC's execution of the global strategy set out in May 2011 and demonstrates the Group's commitment to driving growth and improving returns by restructuring or exiting businesses that do not meet its investment criteria," a statement of HSBC said.
HSBC remains committed to delivering world-class Shari'ah compliant products and services for customers in Malaysia, Indonesia and Saudi Arabia (through SABB), and Islamic Investments and global wholesale Islamic financing/Sukuk solutions (through HSBC Saudi Arabia Limited), the statement added.