DUBAI DEBT CRISIS NOT PERMANENT SETBACK TO ISLAMIC FINANCE

KUALA LUMPUR, March 10 (Bernama) -- The Dubai debt crisis does not represent
a permanent setback to Islamic finance eventhough the sukuk or Islamic bonds
suffered a blow as potentially safer instrument than conventional.

Deputy Minister of International Trade and Industry Mukhriz Mahathir said
this was because of the reasonable disenchantment with the banking and financial
system as practised in the West.

However, a marked slowdown in business could occur, he said at the launch
of the Amanah Mutual Bhd Shariah-compliant close-ended fund AMB Dana
Aqeel Capital Protected Tuesday.

Mukhriz said the Islamic finance players in the country must be prepared to
counter the impending negative effects from the uncertainties in the global
market.

"We must aggressively open up new markets following the present
capital-surplus countries that have been buying our Islamic products may be
undergoing a slowdown from reduced revenue in commodities," he said.

Mukhriz said the Islamic unit trusts in the country has emerged as a
significant growth area for the overall unit trust and fund management
industry.

From just 17 products in 2000, the unit trust industry now offers 144
Islamic unit trusts products in both equity and bond categories, he said.

"The viability of Islamic unit trusts is evident from their acceptance by
investors with the total net asset value (NAV) of the products touching RM22.0
billion (US$6.58 billion) or 11 per cent of the entire industry's NAV of RM200
billion (US$58.9 billion)," he added.

-- BERNAMA