Seven Islamic banks out of the 23 registered commercial banks in the U A E represent nearly a fifth of the country’s banking assets.
Islamic banks assets grew three times more than the conventional banks assets during Q 1 2017 said the research quoting data from the U A E Central Bank latest quarterly report.
In the first quarter of 2017 Islamic banks assets had a higher growth of 3.2 percentage than the conventional ones 1 percentage while on an annual basis Islamic banks grew by eight percent and continued to dominate the conventional banks growth that showed an increase of 5.9 percent, the C B report mentioned.
Islamic banks credit to individuals recorded 7.6 percent to A E D 126 billion in Q 1 2017 compared to a two percent growth in the conventional banks credit to individuals that reached A E D 224 billion for the same period.
Raees Ahmed, Director of Orange Fairs and Events, organiser of the Halal Expo Dubai, 2017 said This means Islamic banks personal
finance, including Islamic credit card sector is growing at a higher rate than that of the Conventional banks personal finance and credit card segment.
The split between conventional and Islamic banks indicates that the growth in Islamic financing is much steeper than that for the conventional banks loans.
This effectively means that lending in the Halal sector is going up at a much higher rate than that of the non Halal sector, as was evident in the first quarter of 2017.