By Robin Brant
BBC News, Kuala Lumpur
Proton believes it may have found a huge gap in the market
Proton is planning on teaming up with manufacturers in Iran and Turkey to create the unique vehicle.
The car could boast special features like a compass pointing to Mecca and a dedicated space to keep a copy of the Koran and a headscarf.
The idea came during a visit to the Middle East by a delegation of Malaysian politicians and businessmen.
Malaysian press reports say officials in Iran originally suggested the idea.
Safety features or fuel economy is one way of selling a car, but Proton thinks vehicles designed specifically for Muslims across the world represent a huge gap in the market.
Proton is the most dominant car on the streets here but the company has suffered recently after the government allowed more foreign cars to be imported.
The firm has been in talks recently with VW about a takeover by the German car giant.
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Proton, a car company in Malaysia has announced that it plans to begin building a car specifically for Muslims.

They will work with other car makers in Iran and Turkey to build an "Islamic" car, which would the first car of its kind and will be unlike any other car on the world's market.

"What they (Iran) want to do is to call that an Islamic car. We will identify a car that we can develop and produce it in Malaysia, Iran or Turkey. For Proton, we are more than happy because we have products that we can share," said Syed Zainal Abidin Syed Mohamed Tahir, the chief executive of Proton. The idea was originally proposed by Iran.

Features are to include a compartment for the person's headscarf and Qur'an as well as a compass that will constantly point in the direction of Mecca, Saudi Arabia.

Currently, Volkswagen which is headquartered in Germany, is in negotiations to partner with Proton and American automaker General Motors Corporation. Proton has been posting financial losses, with over US$160 million lost in 2007 alone.