Why is Maybank establishing Islamic wealth hubs in Singapore and Dubai?

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Maybank Establishing Islamic Wealth Hubs to Drive Global Islamic Banking Leadership

Maybank is establishing global Islamic wealth management hubs in Singapore and Dubai as a strategic initiative under its M25+ corporate strategy to build global Islamic banking leadership. The move is driven by the recognition of Singapore as a comfortable and strategic location for investment, where significant Muslim capital is managed through conventional offerings, presenting an opportunity to introduce and scale Islamic finance solutions. This expansion aims to cater to the Shariah needs of the global Muslim population, estimated at 1.7 billion.
Strategic Rationale for Singapore Hub

Singapore was selected as a hub because it is perceived as a place where individuals are comfortable investing their money, aligning with the principle of being present where the target demographic is located. Despite having a Muslim population of 15%, Singapore also manages substantial funds for other Muslim investors who currently utilise conventional financial products. This creates a unique opportunity for Maybank Islamic to offer its distinct proposition, which is grounded in five pillars: creation, accumulation, preservation, purification, and distribution.
Opportunity in Conventional Investor Base

A significant driver for establishing the hub in Singapore is the presence of Muslim investors from Malaysia, Indonesia, Brunei, and the GCC who already invest in the city-state for diversification and financial returns. Maybank sees a clear opportunity to provide these investors with an alternative Islamic finance offering that meets their Shariah requirements. This approach leverages Singapore's status as an international wealth management centre, which regulators have welcomed as a unique proposition.
Maybank Islamic's Existing Strength and Global Ambitions

Maybank Islamic is already a substantial entity, with Islamic financing constituting 67% of Maybank Malaysia's financing. When combined with its operations in Singapore and Indonesia, it contributes nearly 40% to the Maybank Group's profit before tax. Furthermore, Maybank Islamic holds a strong position globally, ranking fifth among the top 10 Islamic finance asset providers, notably being the only Malaysian and non-GCC bank on that list. This existing strength underpins the ambition to expand its reach and make its Islamic finance offerings more widely accessible.

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Why is Maybank establishing Islamic wealth hubs in Singapore and Dubai?

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