Hejaz CEO Hakan Ozyon
Melbourne-based Sharia finance house Hejaz Financial is working on a roundabout plan to secure a banking licence in Australia.
Having recently raised €100 million in capital from the UAE, Hejaz for now is focussing much of its growth ambitions in Bahrain.
Its first step is seek a Tier 1 Asset Management Licence in Bahrain.
Hejaz then plans to apply for a banking licence in Bahrain, Hakan Ozyon, CEO of Hejaz told Banking Day.
If successful, Hejaz will then seek a branch banking authority in Australia.
Founded in 2014, Hejaz Financial is a wholesale and retail money manager. It manages half a dozen Sharia-compliant Exchange Traded Funds listed on the ASX.
It is also close to launch a range of ETFs on Euronext, via licening through the Central Bank of Ireland.
Should Hejaz – eventually – realise its banking ambitions in Australia, it would be confined to business banking, as foreign bank branches cannot accept deposits under $250,000.
Hejaz is one of the shareholders of Islamic Money Australia – formerly Islamic Bank Australia. Islamic Bank Australia returned its Restricted ADI licence in early 2024, having failed to raise sufficient capital to progress to a full licence.
IMA continues to plug away with its banking ambitions.
Islamic Money is in discussions with APRA about reapplying – for a full licence and not a RADI – Dean Gillespie, the CEO of IMA said.
Gillespie said IMA was “deep in due diligence” with potential investors, with the firm seeking to raise $40 million, with hopes of securing a banking licence and opening for business in 2026.