Businessweek.com, November 22, 2006
KUALA LUMPUR, Malaysia
Middle Eastern investors interested in diversifying their risks are zeroing in on Malaysian real estate, property executives and bankers say.
Malaysia's growing infrastructure projects, relatively transparent laws on ownership and the availability of Islamic financing make the country attractive to Middle Easterners, who are familiar with Malaysia as a vacation destination.
Since 2005, two Middle Eastern parties have invested more 2 billion ringgit (US$548 million; euro428 million) in three major development projects in Muslim-majority Malaysia.
Kuwait Finance House, the first foreign Islamic bank to operate in Malaysia, is a 49 percent investor in the Pavilion, a condominium, hotel, office and retail complex in Kuala Lumpur.
It also owns 20 percent of the Sunway South Quay housing development in a suburb outside Kuala Lumpur -- a project expected to have about 4,000 luxury home units and apartments.
Bahrain-based Al Salam Bank is partnering Malaysia's E&O Property Development Bhd. to develop seafront luxury villas in northern Penang state.
