DOHA: Islamic banking assets in six core markets, including Qatar, is set to hit $1.8 trillion by 2019, according to EY’s “World Islamic Banking Competitiveness Report 2014-15”.
The EY’s report released yesterday noted Islamic banking assets with commercial banks in international markets are set to exceed $778bn in 2014. Global Islamic banking assets witnessed a compound annual growth rate (CAGR) of around 17 percent from 2009 to 2013.
Approximately 95 percent of international Islamic banking assets of commercial banks are based out of nine core markets, five of which are in the GCC — Qatar, Saudi Arabia, UAE, Kuwait and Bahrain. The market share of Islamic banking assets in Saudi Arabia, UAE, Qatar, Kuwait, Bahrain and Malaysia is now between 20 percent and 49 percent. The analysis excludes Iran.
Islamic banks in Saudi Arabia, Kuwait and Bahrain represent more than 48.9 percent, 44.6 percent and 27.7 percent market share, respectively. Positive progress has been has made in Indonesia, Pakistan and Turkey, with 43.5 percent, 22.0 percent and 18.7 percent CAGR respectively from 2009 to 2013.
Gordon Bennie, MENA Financial Services Leader at EY, says: “The six rapid-growth markets (RGMs) – Qatar, Indonesia, Saudi Arabia, Malaysia, UAE and Turkey (QISMUT) – commanded 80 percent of the international Islamic banking assets at US$625b in 2013. QISMUT Islamic banking assets are expected to continue to grow at a five-year CAGR of 19 percent to reach $1.8 trilion by 2019.”
Ashar Nazim, Global Islamic Finance Leader at EY, said: “The Islamic banking industry has gone mainstream in several core markets. This presents new opportunities as well as new challenges, and demands a fundamentally different approach to profitable growth.” The Peninsula
