Dubai: The UAE is ranked second worldwide, after Malaysia, in terms of the healthiest Islamic economies by the recent Thomson Reuters’ State of the Global Islamic Economy 2015-16 Report, but the country will aim for top position, supported by its strong Islamic banking sector, said UAE Central Bank Governor Mubarak Rashid Al Mansouri.
“We will not settle for second place, and we will keep striving until we are number one globally,” Al Mansouri said at the Global Islamic Economy Summit on Monday.
Islamic banking assets in the UAE grew to Dh445 billion at the end of the second quarter of 2015, an increase of 9.8 per cent since the start of the year. Al Mansouri said that the eight Islamic banks in the UAE increased their share of total banking assets to 18.4 per cent at the end of the second quarter, from 17.3 per cent in the first quarter of 2014. Meanwhile, Islamic banks’ total financing increased by 9 per cent at the end of the second quarter of 2015 from the beginning of the year to reach Dh290 billion, equivalent of 21.7 per cent of domestic Credit.
“Islamic finance, particularly banking, is not only established, but also is a rapidly growing asset class. As we look backward, we remember the humble beginnings more than three decades ago and we cannot help it [but] to feel proud how Sharia-compliant financial instruments have now broadened and the industry has increasingly deepened its shares in the financial system,” he said
Globally Islamic banking assets are estimated at $1.3 trillion (Dh4.77 trillion) and are growing a robust rate of 16 per cent per annum. “The scope of growth has provided an investment alternative for more than 2 billion Muslims today, as well as a complement for non-Muslims in the international financial community that have been attracted to Islamic financing for the unique features it offers in terms of risk sharing and financial inclusion,” said Al Mansouri.
