Malaysian firm Zaid Ibrahim has obtained approval to launch offices in Sydney and Melbourne next year, making it the first Asian law firm in Australia and the first time an Asian firm has practices here.
Zaid Ibrahim is targeting the burgeoning US$1 trillion Islamic finance industry, although the firm will only advise on foreign laws, not Australian laws. “We decided to expand our presence to Australia in view of the tremendous interest in Islamic finance and Shariah-compliant advisory services,” the firm’s chairman, Dato’ Dr Nik Norzrul Thani, said recently.
The chairman (pictured) said the Malaysian firm witnessed growing Australian interest in Islamic finance products firsthand when its lawyers visited Melbourne and Sydney early in December to promote Shariah finance. The lawyers were part of a delegation of officials – including those from Malaysia’s central bank, Bank Negara. “We personally saw the tremendous interest from Australian businesses during the MIFC and Austrade road show,” said Thani.
Zaid Ibrahim’s launch comes as both the Malaysian and Australian governments expect cross-border investments between the countries to increase. The positive trading environment has been created by recent developments, such as the ASEAN-Australian-New Zealand Free Trade Agreement (AANZFTA) to come into effect in January 2010; Malaysia’s simplification of foreign investment ownership laws for its financial services sector, and the Australian government’s intention to develop its local Islamic finance sector.
Zaid Ibrahim's Dubai office, launched in 2008, is presumed to be another key reason behind the dual launch in Australia, since the Malaysian firm is also tapping the market for Middle East investments into Australia. “As the Australian government looks at attracting more investments from the Middle East for its major infrastructure projects, through our Dubai office and regional network in Asia, [we will] play a role as a bridge to facilitate these investments,” Thani added.
While office managing partners and an official launch date have yet to be announced, it is understood that the firm’s partner Lim Kar Han, who is admitted to practice in NSW and obtained his dual economics/law degree from the University of Sydney, will spearhead the two launches from Kuala Lumpur. He will build critical mass by initially transferring lawyers to the new offices. “We have 160 lawyers to cherry-pick from, but as we evolve and grow we will evaluate the market demands,” said Thani. “Our physical presence on the ground provides us with the option to engage local talent when the need arises within the middle and long-term time frame.”
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