UAE: UAE Islamic banking assets make up 7% of global total

The UAE Central Bank has announced that total Islamic banking assets in the UAE have increased to AED520 billion, which equates to 7% of the global total. Saif Hadef Al Shamsi, the Assistant Governor for the Monetary Policy and Financial Stability at the UAE Central Bank, said that Islamic banking assets account for around 20% of AED2.6 trillion in total assets held by UAE banks and that Islamic banking deposits have grown by 42% over the past 3 years, compared to 18% in conventional banking institutions. Lending by Islamic banks has also increased by 54% in the same period.

This announcement will come as a huge boost to the Dubai Islamic Economic Development Centre (DIEDC) who in January updated their strategy for 2017-2021 with the aim of making Dubai the Islamic banking capital.

RFi Group data suggests that this growth could continue into the future, with 41% of UAE retail banking customers saying they will exclusively choose retail banking products, and an additional 49% saying they will choose whatever they regard as the best offer, meaning that the increases in Islamic banking assets is likely to continue so long as Islamic banking products remain competitive.

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