An interesting article below which demonstrates the importance of Islamic Finance in relation to China’s Belt and Road Initiative.

To summarise:

1. Following the launch of the Belt and Road Initiative in 2013, Islamic Finance has gained prominence in China and amongst Chinese finiancial institutions;

2.  The Asian Infrastructure Investment Bank and the Islamic Development Bank have reached an agreement to provide infrastructure financings in the Islamic world;

3. The Asian Infrastructure Investment Bank will issue sukuk for large development projects;

4. The Industrial and Commercial Bank of China has confirmed its desire to establish Shariah compliant banking products in the Gulf and China;

5. The Chinese government has introduced a series of Islamic funds to attract foreign investors and consequently, a number of Islamic financial institutions from around the world have begun to invest in China;

5. The HNA Group, which owns Hainan Airlines, became the first firm in mainland China to seek Islamic finance; and 

6. In conclusion, Islamic finance will continue to be a crucial element of the implementation of China’s Belt and Road Initiative.