UAE a leading Islamic finance hub, says Philippine investment firm COO

An island-province in the Sulu archipelago of the Philippines is taking the lead as the next miracle in East Asia.

This is Basilan, which, alongside Maguindanao, Lanao del Sur, Sulo and Tawi-Tawi comprise the 4.4 million-populated Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). Its main inhabitants are the indigenous Yakans, descendants of early Papuan settlers, that welcomed this year, the Shariah-compliant Sulo Barakah Ventures (SBV) “for inclusive economic growth that can break cycles of intergenerational poverty and secure lasting peace.”

Justine Lyris Bacay told Gulf Today that SBV “adheres” to the globally-accepted standards of the 1991-established Bahrain-based not-for-profit organisation (NPO) Sharia Standards of the Accounting and Auditing Organisation for Islamic Financial Institutions: “Our Sharia Supervisory Board ensures all investments comply with Islamic jurisprudence. While the specific external Shariah scholars or firms that will formally approve our compliance are part of our ongoing process as we complete local fundraising and plan the Abu Dhabi Fund for Development incorporation, our commitment to rigorous Shariah vetting is absolute.”

“Our commitment to Shariah compliance is fundamental. It is woven into the very fabric of our investment philosophy and operations. We ensure that every investment from foreign and domestic investors is halal, aligning with Islamic finance principles and our investors’ values,” Bacay added.

The World Economic Forum (WEF)-Maritime Southeast Asia Community champion/former Deloitte Central Europe risk consultant is the SBV chief operating officer. She and the other SBV officers were in the UAE recently. They presented their programme to Philippine Ambassador Alfonso Ferdinand Ver and Consul General in Dubai and the Northern Emirates Marford Angeles.

The other SBV officials are board chairman Maria Antonia Odelia Arroyo, chief executive officer Mohammad Taha Basman II and chief economist Assad Baunto. Arroyo was a WEF 2015 Young Global Leader who advised the international organisation. into public-private organisation commitment, on responsible investing for the United Nations Sustainable Development Goals in 2022.

She assisted in the poverty alleviation of 19,465 rice farmers through the Philippine investment company Ignite Impact Fund. Bangsamoro Investment Code co-author Basa, who, like Bacay is an Asian Institute of Management alumnus and through the NPO The Asia Foundation, led projects for the World Bank, United States Agency for International Development and the Australian Government-Department of Foreign Affairs and Trade. University of Oxford-Master in Economics degree holder Baunto used to be a World Bank and Asian Development Bank development economist. He has the most extensive work experience in the BARMM.

“The UAE is a strategic priority and a natural initial major stop. Primarily, we plan to incorporate our fund in the Abu Dhabi Global Market after local fundraising. The UAE is a leading Islamic finance hub with robust regulations and significant capital pools, making it an ideal gateway to engage broader Middle Eastern investors,” Bacay said. The SBV officers are optimistic that Basilan and the entire BARRM is the next progressive region “in Southeast Asia’s second fastest growing economy.”

Examples given were the exodus of Southeast Asia’s number one economy, Singapore, “from fishing villages to global financial hub,” the 1950s underdeveloped tiny Taiwan to an industrialised nation, and the high-income South Korea, which, 70 years back, was a nearly deforested war-torn impoverished state.

Bacay mentioned the 2019 local plebiscite that re-designed the once Autonomous Region in Muslim Mindanao into BARMM: “This has provided political stability and institutional frameworks necessary for large-scale investments in its undervalued assets of rubber and seaweed production, marine diversity, first Islamic rural bank, Smart Battery Energy Storage System, renewable energy plant and ferry, broadband satellite internet, bio-processing company, and integrated mangrove mariculture and cultural experience.”