MUFG Japan Breaks Into Islamic Finance

Mitsubishi UFJ Bank Japan has made a significant move in the Islamic finance sector with the launch of its new Islamic finance business, operating from its Dubai branch. This expansion represents a key step in broadening the bank’s financial services to meet the growing demand for Shariah-compliant products in the Middle East and North Africa (MENA) region.

The newly established business will offer a wide range of Islamic financial products and services, including trade finance, deposit accounts, and loan-equivalent services. This initiative aims to cater to the diverse needs of customers seeking Shariah-compliant financial solutions, reflecting Mitsubishi UFJ Bank’s commitment to ethical and inclusive finance.

“MUFG’s Islamic Window is now operational, providing Islamic finance solutions across the EMEA region. Our offerings will be modeled after the highly successful Islamic finance business implemented through our Malaysian subsidiary,” the bank announced. Since 2008, MUFG has been a pioneer in Islamic finance in Japan, marking its entry into the market as the first Japanese bank to offer such services in Malaysia.

Shichito Tobari, the Regional Head for the Middle East and General Manager of the Dubai branch, highlighted the strategic importance of this launch. “The introduction of our Islamic finance division aligns with the substantial growth of the Islamic finance industry in the MENA region. This sector is expanding at a rate that outpaces traditional financial services. By establishing this Islamic Window, we can better tailor our products and services to meet local customer needs, especially in terms of applying Shariah rules and principles,” Tobari noted.

The Islamic Window’s Shariah Supervisory Board will oversee the compliance and adherence of all products with Islamic law. The board comprises esteemed members including Chairman Nizam Yaqubi, and members Mohamed Ali Elgari and Mohammad Abdul Rahim Sultan Al Olama. Their expertise will ensure that the financial solutions provided meet the highest standards of Shariah compliance, reinforcing the bank’s dedication to offering reliable and ethical financial products.

This expansion reflects Mitsubishi UFJ Bank’s broader strategy to enhance its global financial services footprint while addressing the specific needs of Muslim customers. As Islamic finance continues to gain traction globally, the bank’s new Dubai venture is poised to play a significant role in the development of Shariah-compliant financial solutions in the region.