Kuwait Finance eyes more Asia investments

By Syed Azman

KUALA LUMPUR (Reuters) - Kuwait Finance House (KFIN.KW: Quote, Profile, Research, Stock Buzz), the Gulf's second-largest Islamic lender by market value, is actively looking for more investments in China, India, Indonesia and Malaysia as well as fund-raising deals for customers, the head of its Asian operations said on Tuesday.

"For direct investments, we are looking at waste treatment, healthcare such as hospitals, fast-food industry, manufacturing, plantations and logistics," Salman Younis, who is based in Kuala Lumpur, told the Reuters Islamic Finance summit.

"There is ample money and liquidity available. Funding is not an issue, the issue is getting the right deals."

Younis said Kuwait Finance, which failed in its bid to buy a stake in Malaysia's fourth-largest lender RHB Group and some of the bank's branches, would focus on organic growth for now.

"If there is an opportunity to acquire a bank, we will see, but right now the focus is on organic growth. We are not talking to anyone, we are not looking at anyone," he said. Kuwait Finance opened its Asian headquarters in Malaysia in early 2006.

Younis said Asia's fund managers need to be more aggressive in bringing back funds from the Middle East which had left during 1997/1998 financial crisis.

"Fund managers here are still not reaching out to the investors. They are quite slow and not as aggressive as the American and European fund managers. It takes time, but Asia is on their radar," he said.

ISLAMIC BONDS  Continued...