UAE: Islamic banking outgrows conventional banking in 17Q1

The first quarter of 2017 has seen a substantial growth in the UAE’s Islamic banks sector, which has seen assets rise by 3.2%, according the UAE Central Bank’s latest quarterly report.

The Islamic banking sector’s growth has outpaced that of the conventional banking sector by three times, further emphasising the growing popularity of Shariah-compliant finance. Currently seven out of the twenty-three registered local banks in the UAE are fully Shariah-compliant and they share a fifth of the market in terms of assets, mirroring the main bank market share of Islamic banks according to RFi Group data.

The Islamic banking sector’s growth has outpaced that of the conventional banking sector by three times, further emphasising the growing popularity of Shariah-compliant finance.

Loans to individuals made by Islamic providers during the first quarter grew by 7.6% compared to 2% for conventional banks, demonstrating that Islamic banking products are becoming increasingly attractive in the eyes of retail banking consumers.

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