KUALA LUMPUR, May 7: Malaysia’s top lender Malayan Banking and the commercial arm of the Jeddah-based Islamic Development Bank plan to start a global Takaful (Islamic insurance business), the Malaysian bank said on Wednesday.

The bank, also known as Maybank, said it signed a pact with ADB’s Islamic Corporation for Development to study the feasibility of setting up a Takaful holding firm with the aim of creating a global leader in the Takaful business.

“The plan is for the new holding company to commence operations by end 2008,” Maybank said in a statement.

The holding company will combine Maybank’s expertise in the Takaful business and ICD’s comprehensive knowledge of the Islamic markets in member countries.

Under the pact, the holding company plans to set up Takaful companies around the world, including in ICD’s non-member countries.

“We believe the opportunities are tremendous, given that the global Takaful business is expected to grow to over

$15 billion by 2015 from $2 billion currently,” Maybank Chairman Mohamed Basir Ahmad said.

ICB’s Director of Investments Abderrazak Luoati said the current penetration of Takaful was extremely low in most Muslim countries.—Reuters