Qatar Islamic Bank is looking for an acquisition candidate in Indonesia, keen to hit the ground running in a competitive market with an already-established corporate and retail operation in the world’s largest Muslim market.

No decision or short-list has been announced publicly yet. Indonesia has 11 Islamic banks and is seen as the sector’s next big growth market, with shariah banking assets expected to triple to Rp130 trillion by the end of 2011. The Asian Finance bank, 62% owned by Qatar, says it is keen to use Indonesia as a springboard to pan-Asian operations, even looking to markets like South Korea for Islamic finance opportunities. South Korea has recently altered regulations to accommodate the alternative to ‘mainstream’ finance, while Indonesia has taken similar steps such as proposing tax incentives to stimulate sukuk (Islamic bonds) issuance.

source & article: TradeArabia