Dubai – Mubasher: Japan's Bank of Tokyo-Mitsubishi (BTMU) announced receiving a licence from the Dubai Financial Services Authority (DFSA) to operate an Islamic window, which allows banks to conduct Islamic finance by segregating assets from conventional interest-bearing funds.

This step highlights the growing interest for sharia-compliant banking in Japan

BTMU said it took the step after Japan's Financial Services Agency changed its supervisory guidelines, according to a statement.

In September, the Japanese bank became the first Japanese commercial bank to issue Islamic bonds.

Worth noting, the Japan International Cooperation Agency has signed an agreement with the private sector arm of Saudi Arabia’s Jeddah-based Islamic Development Bank (IDB) to develop sharia-compliant transactions.