Business | Banking

Islamic banking growth to hit $2.7tr

Sector has seen a ten-fold increase over a decade due to its transparency and trust

  • By Himendra Mohan Kumar, Staff Reporter
  • Published: 00:00 September 28, 2010
  • Gulf News

Sarwar
  • Image Credit: Supplied
  • Sarwar said at present, of the estimated Dh1.5 trillion worth of assets held by domestic and foreign banks in the UAE, 16 per cent was in Islamic banking.

Abu Dhabi: Islamic banking is growing at a fast pace and its size globally is expected to reach $2.7 trillion (Dh9.9 trillion) by 2015, up from an estimated $1 trillion at present, a senior executive of Abu Dhabi Islamic Bank (ADIB) said yesterday.

"Globally, the industry is growing at a double digit rate [annually]. Due to its transparency, trust and ethical practices, clients are increasingly looking at Islamic solutions for themselves," Malek Sarwar, Co-Head of Private Banking and Wealth Management Group, told reporters at a news conference.

Ten-fold rise

He said Islamic banking has seen a ten-fold increase over a ten-year period. Sarwar said at present, of the estimated Dh1.5 trillion worth of assets held by domestic and foreign banks in the UAE, 16 per cent was in Islamic banking.

Separately, ADIB on Monday announced the launch of its wealth management service that will cater to the needs of mass, affluent and high net worth customers.

ADIB Wealth Management offers a range of investment solutions such as sukuk, equity, treasuries, commodities, mutual funds, real estate advisory, trust, private equity and other Sharia-compliant opportunities worldwide.

These cater to different risk and return levels and are based on financial objectives, risk tolerance and investment time horizons desired by clients. "Wealth management is central to our plans ...and we have allocated sufficient resources to let it spread its wings not only in the UAE but also globally. It is a step in the direction of making the bank a globally preferred Islamic finance solutions provider," ADIB quoted its chief executive Tirad Mahmoud as saying.

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