Mizuho Corporate Bank, Bank of Tokyo, Sumitomo Mitsui Banking Corp. Eye Middle East

Japanese banks have their eye on money made by oil producers in the Middle East. And, they do make money.

Presently banks in the US and Europe seem to be home to the oily funds produced from global sales.

Mizuho Corporate Bank has agreed to provide a guarantee facility for Dubai Rapid Link consortium. Dubai is the 2nd largest of the U.A.E. seven sheikdoms. The office will be the bank’s 3rd in the Middle East. Iran and Bahrain have the other two.

Bank of Tokyo – Mitsubishi UFJ is also preparing to open up a branch in Dubai.

Sumitomo Mitsui Banking Corp planst to open up a branch in Dubai in Jan. 2007.

Problem: Islamic finance bans the payment or receipt of interest or any transactions that include alcohol or gambling.

Nearly EVERY business deal sealed by Japanese businessmen is done over drinks…Japan has an almost non-existant Muslim population = lack of knowledge with regard to religious regulations of Muslim countries.

So, what are the real chances of these Japanese banks suceeding in the Middle East?

What do you think?