Kuwait Finance House (KFH), a leading Islamic financial institution headquartered in Kuwait, through its subsidiary, Kuwait Finance House (Malaysia) Berhad (KFHMB), is partnering with Belanie Management Limited (Belanie), a Hong Kong-based privately owned international real estate investment company, and Chongqing Risun Industry Group Co., Ltd. (Risun Group), a leading Chinese private enterprise headquartered in Chongqing with diversified business interests, to establish the first sino-foreign real estate joint venture corporation in Chongqing.  Chongqing is the most populous city in the People’s Republic of China (PRC).

Representatives of KFH, Belanie and Risun Group met with the Vice Mayor of Chongqing Municipal People’s Government, Mr. Wu Jianong, and other government officials in a closed door session, before proceeding to a signing ceremony in Chongqing to mark the inauguration of their strategic partnership last Tuesday.

The arrangement paves the way for the parties to leverage on one another’s strengths and vast business networks and resources.  The partnership aims to play an important role in the financial and economic development of Western China, particularly in Chongqing.

As a first step of the partnership, KFHMB has entered into an Islamic funding arrangement with Belanie for an investment in the sino-foreign joint venture with Risun Group, which is presently developing a well-known mixed-use real estate project in Chongqing, namely Jahoo Hongkong City.  The Jahoo Hongkong City development project comprises among others, retail and residential components.

“Through this partnership, KFHMB will be the first Islamic bank to be involved in a corporate real estate transaction in Western China.  This is part of KFHMB’s plan to increase its investment opportunities in the region.  We are interested to participate in Chongqing’s development along with its people and society in a range of sectors, including infrastructure and manufacturing, primarily because Chongqing is not only one of the fastest growing major cities in the world with vast development potential but it is also rich in history, culture and natural resources,” commented Mr. K. Salman Younis, Managing Director of Kuwait Finance House (Malaysia) Berhad.

“This is also consistent with the PRC Central Government’s policy to enhance the development of China’s western region with Chongqing as its main gateway,” added Mr. K. Salman Younis.

In his signing ceremony speech, Mr. K. Salman Younis highlighted that such strategic partnership could play an important role in enhancing the Islamic Financial Industry in the region.

“Our move into Chongqing is strategic and timely as it allows us to participate in the strong economic growth of Chongqing via its real estate market, which is fundamentally healthy and stable.  Most of the real estate demand is generated by owner-occupiers, which is conducive for us as a long-term investor,” said Mr. T. Szen Low, Director of Belanie Management Limited.  He added, “We look forward to strengthening our business relationship with KFH and Risun Group through more cooperative opportunities.  Both KFH and Risun Group are respectable partners to work with.”