The statement was made in the framework of the preparation for the 10th
As the emphasis on low risk product alternatives kept the sector insulated from the financial meltdown, Islamic banking products and services have consistently gained market share in recent times, growing up to 50 percent faster than the traditional banking sector in some markets.
The 10th WIEF, organised by Dubai Chamber and the
The Dubai Chamber report states that there are 38 million Islamic banking customers around the world with two-thirds of them in
Among these six prominent Islamic finance countries,
The research note shows that
In the region, the
According to the Dubai Chamber report, the group of QISMUT was the fastest growing markets for Islamic banking in 2012, with total Islamic banking assets commanded by the QISMUT reaching about
The Dubai Chamber research also shows that globally Islamic banking profit pool is projected to reach
"The report by Dubai Chamber shows that the prospects of Islamic banking are very promising as indicated by the significantly high growth rates of Islamic banking total assets," said Hamad Buamim, president and CEO of Dubai Chamber."
In 2012, QISMUT Islamic banking profit pool was estimated at
Commenting on the findings, PwC Global Islamic Finance Leader Ashruff Jamal said: "A fundamental part of the global Islamic economy is the Islamic finance sector, which is witnessing rapid growth as Islamic financial institutions look to deploy their liquidity into regional and international expansion such as the acquisition of retail portfolio of Barclay's by
He added: "Another notable instance is the recent announcement of an Islamic Exim (export-import) bank, which will be the only institution of its kind in the world with three unique features; it will be Shariah-compliant, trade-based and run largely by the private sector."
The Dubai Chamber report, however, points out that many Islamic retail banks suffer from lower profitability than the conventional banks, mainly due to higher expenses attributed to complex products, lengthy process steps and more interfaces.
It is estimated that on average leading Islamic banks posted 19 percent lower return on equity (ROE) than comparable conventional peers.
The average ROE for the top 20 leading Islamic banks is about 12.6 percent compared to an average of 15 percent of comparable conventional banks, it states.
The Dubai Chamber research note supports recent indications that Islamic finance is extending reach, particularly in the
Interestingly, Islamic finance is also gaining ground in
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