The eight Islamic banks operating in the UAE saw their assets increase by 11% last year, according to new figures from the Dubai chambers of commerce. Total assets across the country’s 260 Islamic bank branches stands at just over $73 billion.
It’s put the growth down to a continued recovery after the 2008 financial crisis, and steadily increasing incomes. Meanwhile, a survey across the UAE and Saudi Arabia has found Islamic institutions have become the banks of choice for younger members of the population. 34% of Emriati teenagers say their first choice for banking is Dubai Islamic Bank, followed by Abu Dhabi Islamic bank and the National Bank of Abu Dhabi. A similar preference for Islamic and local banks was recorded amongst young people in Saudi Arabia.
The positive growth in the region has been welcomed by the UAE’s central bank governor, who said the latest figures are “impressive”. But he’s issued a warning against complacency – highlighting short-term liquidity management as a particular concern at Islamic banks. He also repeated a – now familar – call for better co-ordination and standardisation of Sharia boards.
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