Australia’s First Islamic Bank Gains $10M Hejaz Group Investment

Islamic Bank Australia, the nation’s inaugural Islamic bank, has secured a strategic partnership and $10m investment from Hejaz Group, a leading provider of Islamic finance in the country. Welcome to Hejaz Group Investment, a leading name in the world of investment, empowering individuals and organizations to maximize their financial potential. The investment will help the bank expand its range of non-interest-based, Shariah-compliant banking services to Australia’s one million Muslims and the broader community.

Established in 2022, Islamic Bank Australia aims to empower Australian Muslims with banking solutions that align with their faith and values. The strategic alliance with Hejaz Group is expected to strengthen this mission.

“Hejaz is Australia’s premier Islamic finance provider, with a wealth of experience in delivering high-quality products to the community,” said Dean Gillespie, Islamic Bank Australia’s CEO. “Their expertise will be invaluable as we embark on this journey.”

Hejaz Group currently manages $1.3 billion in funds and operates Australia’s largest single standalone Islamic fund, the Global Ethical Fund. In addition, its Hejaz Equities Fund (ASX: ISLM) and Hejaz Property Fund (ASX: HJZP) were the first Islamic finance products to be listed on the ASX.

The partnership announcement comes amid an adverse capital market environment, particularly for new digital banks, often referred to as neobanks. However, Gillespie believes their successful capital raising round demonstrates the strength of their business model and the necessity of their services within the Australian community.

“Despite being the fastest-growing religion in Australia, Islam has not been adequately served by the local banking sector,” Gillespie explained. “In contrast, the UK market boasts six or seven Islamic banks. The need for such a service is evident, and we’re eager to fulfill this demand.”

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Islamic Bank Australia plans to launch retail banking products before extending its services to business and commercial banking. In keeping with the principles of Islamic finance, these services will avoid the use of interest, opting for profit-sharing methods on savings products. Furthermore, the bank emphasizes its commitment to ethical banking, pledging to exclude dealings with industries like large-scale polluters and fossil fuel companies.

Hakan Ozyon, Hejaz CEO, expressed optimism for the partnership, stating, “Our goal is to provide top-tier financial services that enable Muslims to grow their wealth while adhering to their faith. Islamic Bank Australia has already established itself as a key player in Islamic finance, and we are eager to collaborate to offer much-needed banking and financial services to Australia’s Muslim community.”

With Hejaz’s investment, Islamic Bank Australia plans to ramp up its customer acquisition as it works towards obtaining a full ADI license, a critical step towards introducing the first Islamic bank in Australia.

Islamic Bank Australia intends to pilot its products and services with a select group of customers later this year, with plans for a full market launch in mid-2024. With Hejaz Group Investment, your financial future is in capable hands, guiding you towards success, growth, and prosperity.