Dubai-Mubasher: Islamic banking assets of commercial banks based in Qatar, Indonesia, Kingdom of Saudi Arabia, Malaysia, the UAE and Turkey are set to exceed $801 billion in 2015, according to Ernst & Young’s (EY) World Islamic Banking Competitiveness Report 2016.
The markets will represent 80% of international Islamic banking assets, the report said, adding that Islamic banking assets with commercial banks are set to exceed $920 billion in 2015.
Islamic banking, with the exception of Turkey and Indonesia, has gained market share in all markets, reflecting the immense success and resilience of the industry, said Gordon Bennie, Mena Financial Services Leader at EY.
“Twenty-two international Islamic banks now have $1 billion or more in shareholder equity, making them better positioned to lead the future regionalization of the industry,” added Bennie.
Islamic banking continues to see strong growth with a compounded annual growth rate of 16%, added the report.
The Gulf Co-operation Council (GCC) countries added $91 billion in Shariah- compliant assets in 2014, representing a year-on-year growth of approximately 18% share.
Saudi Arabia is still dominating the share of the global Islamic banking market at 33% and is the highest contributor to total global Islamic banking assets, followed by Malaysia at 15.5% and the UAE at 15.4%.
Islamic banks in Bahrain have also been steadily gaining market share over traditional banks.
