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.
....since many countries in the BRI are Muslim-majority countries, it is important for Chinese banks to become more involved in the Islamic finance sector.
https://thediplomat.com/2019/02/the-rise-of-islamic-finance-on-chinas-belt-and-road/
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