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Dubai To Launch State Of The Global Islamic Economy Report 2014

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Dubai Islamic EconomicSecond annual report to highlight challenges and opportunities for the global Islamic economy
Local and global findings of Global Islamic Economy Indicator (GIEI) to be shared

Dubai-UAE: 24 September, 2014 The Dubai Islamic Economy Development Centre (DIEDC in partnership with Thomson Reuters have announced that State of the Global Islamic Economy Report 2014 will be launched in December 2014. The report will present new insights into the development of the Islamic economy, particularly focusing on key players, geographic trends, and the challenges and opportunities in each segment of the Islamic economy.

The report will also highlight key local and global findings of the Global Islamic Economy Indicator (GIEI), a numeric measure representing the overall health and growth of the Islamic economy. An independent multi-dimensional barometer, the GIEI defines the development of the global Islamic economy beyond the growth of its assets, focusing on awareness, governance and social metrics.

His Excellency Mohammed Abdullah Al Gergawi, Chairman of the DIEDC Board, said: “The UAE and more specifically Dubai’s Capital of Islamic economy model mandates us to assume a leadership role in developing knowledge and cultivating an understanding of the Islamic economy and the various forces driving its growth. The 2014 State of the Global Islamic Economy report provides fresh insight into the challenges and opportunities emerging within economic sectors that are critical to the long term prosperity of Muslim majority countries and the wider global economy.”.

Commissioned by the DIEDC, the 2013 edition of the State of the Global Islamic Economy Report that was also developed in association with Thomson Reuters , was a ground-breaking report that, for the first time, took a holistic view of the global Islamic economy across the seven key Islamic economy sectors, highlighting the convergence opportunities globally. The report, which was launched at the Global Islamic Economy Summit (GIES) in Dubai, in November 2013, received industry-wide attention regionally and globally and has been used as a reference point for understanding the impact of the Islamic economy on the global economy. .

His Excellency Essa Kazim, Secretary General of DIEDC, said: “The State of the Global Islamic Economy Report 2014 will be a guiding tool for all stakeholders and investors to further understand the huge economic potential, as well as the challenges of building an Islamic economy hub. The findings of the 2014 report will define a new wave of opportunities for commerce within the Islamic economy.”

Abdulla Mohammed Al Awar, CEO of the Dubai Islamic Economy Development Centre, said: “The State of the Global Islamic Economy Report 2014 will catalogue the developments that have taken place within the Islamic economy over the past 12 months, as well as providing a comprehensive picture of the important trends that are gathering momentum across the full spectrum of the Islamic economy. I am confident that its findings will help facilitate investments and industry growth, providing a solid framework for businesses to assess and evaluate market opportunities for each sector of the Islamic Economy.”

The State of the Global Islamic Economy Report 2014 is expected to reinforce the growth opportunities in the Islamic economy, particularly in the finance, halal and lifestyle segments. Growth of Islamic financial assets continues to outstrip growth of conventional financial assets at 15-20% per annum and is predicted to hit US $2 trillion in 2015. Meanwhile global expenditure by Muslims on halal food and lifestyle products is forecast to grow by 65% by 2018, to reach US $2.46 trillion.

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About Dubai Islamic Economy Development Centre
‘Dubai Islamic Economy Development Centre (DIEDC) was established in December 2013 to transform Dubai into the ‘Capital of Islamic Economy’, as envisioned by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, supervises the efforts of the DIEDC and its Board to bolster Dubai’s bid to become a global hub for the Islamic Economy, encompassing a wide array of sectors through harnessing the projected US$6.7 trillion Islamic economy market.

DIEDC is equipped with the financial, administrative and legal tools to promote economic activities compatible with Islamic law in Dubai’s goods and financial services sector, as well as the non-financial sector. In this capacity, it will conduct research and specialist studies to determine the contribution of sharia-compliant activities to the emirate’s gross domestic product, and explore how to extend this contribution to boost the economy. DIEDC is also mandated to create new products and lines of service to law firms specializing in finance structuring.”

About Thomson Reuters
Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world’s most trusted news organization. For more information, go to www.thomsonreuters.com

Originally published on www.zawya.com

Global Islamic Economy Growing Faster Than Ever: Lifestyle Expert Says

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Global Islamic economy growing faster than ever expertDammam, Saudi Arabia —The global Islamic economy is growing faster now than at any time previously, attracting increasing investment from around the world, according to the chief executive of a company operating in the Halal lifestyle sector.

Nader Sabri, chief executive of Muslim lifestyle products manufacturer TIMEZ5, told Asharq Al-Awsat , a local newspaper the Halal sector—which includes segments such as Islamic finance and halal food products, as well as the collective economic output of Muslim countries—was “growing faster than at any time before” and had “become very attractive for international investors,” a large portion of whom were not Islamic or based in Muslim-majority countries.

“There are two types of companies operating in this sector,” Sabri said. “The first comprises those who are entering Islamic markets from the outside. These are mostly non-Islamic companies whose interest in Islamic markets is part of a wider strategy for entering emerging markets.”

“The second type are those who look [for opportunities] in Islamic markets from the inside, [looking then to venture] outside [Islamic countries]. These are usually companies managed by Muslims or with a focus on this [Islamic] market,” he continued.

“The first type seeks to create opportunities and to capitalize on Islamic markets as they would in any other market. These companies are not driven by Islamic values but will adhere to them [in their activities] in order to reach these markets,” he said.

“The second type of company, meanwhile, adopts Islamic values as part of its raison d’être and applies quality standards and . . . innovation in Islamic markets.”

Speaking of Gulf contribution to the overall Islamic economy, Sabri said that “50 percent of the market’s total revenues” came from Gulf countries, adding that 87 percent of Gulf revenues came from non-Gulf consumers who purchased such products while visiting the region, especially during the pilgrimage season when the Muslim holy cities of Mecca and Medina in Saudi Arabia are crowded with pilgrims who often purchase products to give as gifts to family members back home.

But Islamic products also have appeal in non-Islamic countries due to the estimated 300 million Muslims living there, Sabri said, adding this showed there was “a need for more products . . . for Muslims living in foreign [non-Islamic] countries.”

The global Islamic economy includes all sectors driven by the global Muslim population’s adherence to any kind of faith-based activity, with products or services created to cater for such activities. These include Islamic finance, where consumers can obtain loans, mortgages, insurance policies or investment products all adhering to Islamic Shari’a law by avoiding the need to make money via interest. It also includes the global halal food market, which follows Islamic prescriptions on animal slaughter, as well as the tourism, cosmetics, pharmaceutical, media, leisure, and lifestyle segments.

“The lifestyle products segment is currently one of the fastest-growing in the global Islamic market, after years of being on the margins due to the domination of the market by Islamic finance and halal food products,” Sabri said.

A recent Thomson Reuters report estimated the total size of the halal food and Islamic lifestyle products segments at 1.62 trillion US dollars, expecting it to grow to 2.47 trillion dollars by 2018.

The global Islamic economy also encompasses the economies of Islamic countries around the world—estimated at 8 trillion US dollars in total size—which together hold a 1.6 billion population currently growing at twice the rate of the global population.

Sabri added: “Historically, investment in the Islamic market has been concentrated on two segments: Islamic finance and halal food products. The total size of the Islamic market is between 10–12 trillion dollars approximately. And given that the growth rate of the world’s Muslim population is around 1.5 percent, which is double that of the world’s non-Muslim population, Muslims consumers worldwide represent a strong economic force.”

But despite the size of the global Islamic economy and its impressive growth in recent years, there are also many difficulties associated with operating in this market.

“The main challenge is the adoption of new technologies,” Sabri said. “This begins at the simplest level: Muslim consumers have become used to traditional designs, colors and styles, which makes changing these deeply embedded aesthetic expectations a very difficult task indeed. As such, it is important to market and inform consumers of new innovations and to create a suitable, trustworthy environment for the safe consumption of new products.”

Despite this, Sabri points to the success of a number of new products and innovations that have recently entered the market.

“This means the Muslim consumer has become much more receptive towards new ideas,” he said. “It is important to market these products using the language of the consumer . . . joining local cultures with Islamic values, and using the mother tongue of the [particular] consumer [being targeted], in addition to applying internationally recognized standards [for all products], which helps increase the demand for the product.”

Originally published on www.aawsat.net

Islamic Economy Awards 2014 Gets Immense Response

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islamic-economy-awards-2014DUBAI Islamic Economy Development Centre (DIEDC) today announced nominations across all eight categories of the Islamic Economy Awards 2014 have witnessed a high uptake from international and local companies. Submission of nominations for the second cycle of awards via the website www.islamiceconomyaward.com will remain open until Oct. 7 October, 2014. The award winners will be announced in in the 4th quarter of 2014.

The Islamic Economy Award is a joint initiative by the DIEDC and Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals that oversees the mechanism of nominations and the eventual selection of winners. The evaluation is carried out by an independent jury panel headed by Hussain Al Qemzi, member of the DIEDC Board and Chairman of Awqaf and Minors Affairs Foundation.

The jury panel consists of local and international officials and experts in the various sectors of the Islamic economy.

Hussain Al Qemzi, Head of the Jury panel, said: “We are proud that in just its second year the Islamic Economy Awards have managed to attract nominations from various companies and institutions that are actively engaged in the Islamic economy sector not just in the region, but around the world. We take pride in the achievements of these companies and seek to showcase their initiatives that enrich the Islamic economy universe.”

Abdullah Mohammed Al Awar, CEO of DIEDC, said: “The award presents an ideal opportunity to review the achievements made so far in all the sectors of the Islamic economy and is a reiteration of Dubai’s pledge to become the global reference point for Islamic economy. Islamic finance and the halal industry have made quantum leaps at local and international levels, but new initiatives have widened the scope of the Islamic economy and led to leveraging innovation for the development of emerging sectors in the field.

“At DIEDC, we are keen to honor the pioneers of the sector, and look forward to celebrating their achievements as they become role models for new generations. The Islamic economy sector has steadily become a vital source of support to conventional economies across the world, aiming at ensuring prosperity and protecting the community from economic and social crises that hinder growth.”

Originally published on www.zawya.com

Islamic Banks One Step Closer To Fruition In Morocco

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MALAYSIA-FRANCE-ECONOMY-ISLAMMorocco’s Economic, Social and Environmental Council (CESE) weighed in on the Islamic bank bill last Thursday (August 28th), proposing two changes.

 

The president of the Chamber of Councillors, Mohamed Cheikh Biadillah, asked the body last month to render an opinion on the legitimacy of the draft’s legal provisions.

Two negative remarks were made by the CESE. The first related to a lack of consumer information necessary to avoid unfair marketing by Islamic banks. The second dealt with the need to clarify the roles of the National Council of Ulema and the central bank in the oversight of the sector.

 

According to Eastern Regional Council of Ulema chairman and CESE member Mustapha Benhamze, the establishment of Islamic banks in Morocco was a necessity.

 

However, civil society activist and fellow CESE member Hakima Naji opposed the intervention of the High Council of Ulema in the financial sector. She criticised the idea of religious management of finance and said that the central bank had the necessary ability to both traditional and Islamic banks.

 

CESE chief and former Economy Minister Nizar Baraka highlighted the importance of creating Islamic banks by explaining that alternative products already existed in Morocco and had accounted for almost a billion dirhams of savings since 2010. This amount, he said, will be boosted by the creation of participatory banks.

 

This type of bank will also make it possible to increase the percentage of people who use banking services in Morocco, which currently stands at 57 percent, he said. “The goal is to increase this rate to two-thirds of the population,” Baraka noted.

CESE underlined in its opinion that more communication about participatory products was absolutely essential in order to explain the concept properly and to avoid distinctions being made between “halal” and “haram” products, sociologist Karim Chabli said.

“We need to be careful that we don’t fall into this trap and create pointless debates that can only harm society when the reason for licensing Islamic banks is to respond to the needs of a category of the Moroccan population,” he said.

Trader Mohamed Chadi is among the citizens pleased that the CESE adopted the draft law on participatory banks.

“I’ve been waiting for years for Islamic banks to be created in Morocco so that I can manage my money in accordance with my religious beliefs. It’s true that I’m banking with a normal bank at the moment, but that’s because I have no other option,” he told Magharebia, underlining that he has friends who take the risk of keeping their savings at home due to the lack of Islamic banks in the kingdom.

Hamza Souieh, an employee, also welcomes the introduction of Islamic finance in Morocco. He has been aspiring to buy a home for years but refuses to take out a loan.

“If Islamic banks are created, I’ll soon be able to buy a flat,” he told us optimistically.

Originally published on www.zawya.com

Dubai Silicon Oasis Supports Islamic Economy Initiative

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Dubai Silicon Oasis Supports Islamic Economy InitiativeDubai Silicon Oasis Authority ( DSOA ), the regulatory body for Dubai Silicon Oasis (DSO), the integrated free zone technology park, today announced its plans to provide support to start-ups and seed ventures engaged in the Islamic economy domain through the Dubai Technology Entrepreneurship Centre (DTEC), the largest such facility in the region.

The announcement is in line with DSOA ‘s commitment to support Dubai’s ‘Capital of Islamic Economy’ initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Set to be operational by Q1 2015, DTEC will provide start ups that offer solutions built around the requirements of an Islamic economy, particularly initiatives that focus on digital and online Arabic content, a nurturing business environment across an area of 3,600 square meters.

 

In addition to providing logistical support, seed money and relevant incentives, DSO will engage the support of its partners including international technology companies to host global events, road-shows and networking platforms towards marketing Dubai as the platform of choice for Arabic content creation and online solutions.

 

Commenting on this initiative, Dr Mohammed Alzarooni, Vice Chairman and Chief Executive Officer ofDubai Silicon Oasis Authority ( DSOA ), said: ” DSO will utilize the DTEC as an effective hub in nurturing start-ups that are focused on developing Islamic products and solutions. We are confident the centre will become a knowledge resource for education and research that form the fundamental pillars of an Islamic economy. Such government-led initiatives will help set the stage for innovation-led investments that will in turn drive the growth of entrepreneurship in the UAE.”

 

“Dubai’s growing focus on digital technology and innovation has begun to attract global capital for the creation of Islamic design products. This has placed the emirate in prime position as a digital economy platform and an international hub for Islamic e-commerce,” Dr. Alzarooni added.

 

His Excellency Essa Kazim, Governor of Dubai International Financial Centre and Secretary General of Dubai Islamic Economy Development Centre, said: “The Dubai Silicon Oasis initiative supports our strategy at the Dubai Islamic Economy Development Centre in shaping the emirate as the Capital of Islamic Economy. SMEs are a major contributor to the country’s Islamic economy. In the MENA region, SMEs contribute up to 45 per cent of employment and up to 33 per cent of the GDP. The next wave of growth in the Islamic digital and content segment will be driven by entrepreneurs with the foresight and drive to take up a business concept and turn it into a successful venture.”

In October 2013, His Highness Sheikh Mohammed bin Rashid Al Maktoum, launched the strategic plan for developing the Islamic economy sector. The strategic plan relies on seven main pillars which include the establishment of Dubai as a global reference and economic engine of Islamic finance, a trusted name and solutions provider for the halal industry, a destination of choice for family friendly tourism, a pioneer of the Islamic digital economy, a capital of Islamic fashion, arts and design, a leading global network of information and education on the Islamic economy, and a world class centre for Islamic economy standards and certification.

A wholly-owned entity of the Dubai government, Dubai Silicon Oasis operates as a free zone technology park for the semiconductor, microelectronic and other high technology-based companies looking to set up their regional headquarters and research and development facilities in the Middle East and North Africa region.

Originally published on www.zawya.com

Dubai Islamic Economy Development Centre (DIEDC) Announced Nominations Awards 2014

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Islamic-Economy-DubaiIslamic Economy Awards 2014 draw global submissions

Dubai Islamic Economy Development Centre (DIEDC) has announced nominations across all eight categories of the Islamic Economy Awards 2014 have witnessed a high uptake from international and local companies. Submission of nominations for the second cycle of awards via the website www.islamiceconomyaward.com will remain open until 7 October, 2014. The award winners will be announced in in the Q4 2014.

The Islamic Economy Award is a joint initiative by the DIEDC and Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals that oversees the mechanism of nominations and the eventual selection of winners. The evaluation is carried out by an independent jury panel headed by Hussain Al Qemzi, Member of the DIEDC Board and Chairman of Awqaf and Minors Affairs Foundation.

The jury panel consists of local and international officials and experts in the various sectors of the Islamic economy.

Hussain Al Qemzi, Head of the Jury panel, said, “We are proud that in just its second year the Islamic Economy Awards have managed to attract nominations from various companies and institutions that are actively engaged in the Islamic economy sector not just in the region, but around the world. We take pride in the achievements of these companies and seek to showcase their initiatives that enrich the Islamic economy universe.

“Remarkably, the Lifetime Achievement category is witnessing a robust participation this year, evidence of the outstanding contributions made by many individuals in leveraging the concept of Islamic economy to ensure sustained development. Without doubt, the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to position the emirate as the capital of Islamic economy has inspired many people to excel and notch up achievements in the emerging sector, not just locally but at a global level.”

Abdullah Mohammed Al Awar, CEO of DIEDC, said, “The award presents an ideal opportunity to review the achievements made so far in all the sectors of the Islamic economy and is a reiteration of Dubai’s pledge to become the global reference point for Islamic economy. Islamic finance and the halal industry have made quantum leaps at local and international levels, but new initiatives have widened the scope of the Islamic economy and led to leveraging innovation for the development of emerging sectors in the field.

“At DIEDC, we are keen to honour the pioneers of the sector, and look forward to celebrating their achievements as they become role models for new generations. The Islamic economy sector has steadily become a vital source of support to conventional economies across the world, aiming at ensuring prosperity and protecting the community from economic and social crises that hinder growth.”

With a young population below 35 years constituting 60 per cent of the Muslim population, the need to work out innovative and creative economic solutions that cater to their needs and aspirations is imperative.

The Islamic Economy Award will recognise global and regional leadership within the eight categories. A special ‘Lifetime Achievement Award’ will additionally honour an outstanding business leader for demonstrating inspired leadership and making an impactful contribution to the Islamic economy sector. The eight primary categories are:

  1. Islamic Finance – Islamic microfinance, SME and Venture Capital Financing, corporate or sovereign sukuk issuing entities, takaful and retakaful, Islamic banking, and Islamic fund management
  2. Food & Health – Agriculture, ingredients and manufacturing, retail, logistics, research and product development and food services, cosmetics, personal care, and pharmaceuticals
  3. Media – Entertainment shows, publications, social media, and mobile apps
  4. Hospitality and Tourism – Family friendly travel, meetings, incentives, conferences and exhibitions (MICE), medical tourism, and Hajj/ Ummrah
  5. Waqf and Endowments – Innovative solutions, government managed and private awqaf/waqf management services, and cross-border waqf
  6. SME Development – Technology, incubation, training, infrastructure and SME Eco System development
  7. Islamic Economy Knowledge Infrastructure – Research and educational institutions or initiatives, compliance and standardisation
  8. Islamic Arts – Artists, fashion and jewellery designers

In addition, a ‘Lifetime Achievement Award’ will recognise an outstanding business leader for demonstrating inspired leadership while positively influencing the Islamic economy and making an impactful contribution to the sector.

Originally published on www.cpifinancial.com

Dubai Islamic Economy Development Centre Launches Global Islamic Economy Summit 2013 Report

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global-islamic-economy-summitDUBAI  The Dubai Islamic Economy Development Centre, DIEDC, in partnership with Thomson Reuters and the Dubai Chamber of Commerce and Industry, has launched a report outlining key findings from the Global Islamic Economy Summit, GIES, 2013.

The GIES 2013 Review details the discussions of 25 sessions held at the summit and outlines key recommendations across the six pillars identified by DIEDC to articulate Dubai?s vision of developing as the capital of Islamic economy. The pillars include Islamic finance, Halal food, Halal travel, Halal lifestyle, SME development and Islamic economy infrastructure.

Essa Kazim, Secretary-General of DIEDC, said, “GIES 2013 Review is a valuable repository of information on the effectiveness and efficiency of efforts by industry leaders to drive the global Islamic economy, and serves as a roadmap for its growth. We are proud to share with the world the milestones Dubai has achieved in positioning itself as the capital of the Islamic economy. We will continue to bridge ideas and aspirations to achieve better outcomes at the Islamic Economy Summit 2015.” A consensus highlighted in the review is that global growth of the Islamic economy must revolve around a more integrated interplay of three Cs: Common standards, Convergence, and Cross-border trade, or risk inefficiency and slower growth if the status quo of fragmented markets and disparate efforts persist.

It goes on to say that development of the Islamic economy has to yield to common standards and governance structures, notwithstanding cross-country differences. This is imperative for the Halal sector where the multiplicity of certification and accreditation standards is a handicap for market players, which are predominantly SMEs struggling to grow and reach new markets.

 For Islamic finance, common standards and contract templates for banking, capital market, Takaful, and asset management will facilitate higher levels of cross-border flows currently blocked by different Sharia interpretations and legal practices.

 The review reflects repeated calls for ‘passporting’ regimes to be implemented to break down barriers to cross-border flows, especially for funds and the coordination of Takaful operators. At the same time, convergence of the Islamic finance and Halal sectors is recognised as being long overdue, with the Islamic finance industry being asked to dedicate more resources to the financial requirements of SMEs in the Halal sectors. These SMEs, in turn, need to upgrade their business savvy to appeal better to potential investors and financiers. 

Common standards and convergence will lead to greater cross-border links, while at the same time, trade barriers must be reduced through preferential trade agreements, especially to increase intra-OIC trade.

GIES 2013 Review has detailed key recommendations for each of the six pillars of the Islamic economy. While speaking in different terms, Islamic finance and the Halal sectors recognise that what the ?Halal? or ?Sharia-compliant? labels represent will require transformation; this includes the management of Awqaf (endowments). In the Halal sector, there is a clear shift towards ?Tayyab? (wholesome) that incorporates a concern for animal well-being, organic food, and end-to-end sustainable value chains. In Islamic finance, the focus is towards moving from ?form? to ?form and substance?, where Islamic banks, Takaful operators and fund managers are recognising the need to take back the ?ethical? label in order to gain a larger and mainstream market share.

The review also presents recommendations based on key insights from industry leaders for the fledgling sectors of Halal travel and lifestyle.

Islamic Financial Products Gaining Popularity In The Gulf

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ISLAMIC-ECONOMIC-FORUM• Saudi Arabia, UAE, Qataramong fastest growing markets for Islamic banking in 2012, says research note
Dubai, UAE – In the framework of the preparation for the 10th World Islamic Economic Forum (WIEF), which will be organised in Dubai from 28-30 October 2014, a report by the Dubai Chamber of Commerce and Industry based on a recent study by Ernst and Young stated that global Islamic banking assets have registered cumulative annual growth rate of about 16 per cent during the period 2008-2012, reflecting the radical shift from conventional financial system in favour of Islamic finance.

As the emphasis on low risk product alternatives kept the sector insulated from the financial meltdown, Islamic banking products and services have consistently gained market share in recent times, growing up to 50 per cent faster than the traditional banking sector in some markets.

The 10th WIEF,organised by Dubai Chamber and the WIEF Foundation, is set to give a new direction to the Islamic finance industry, and help consolidate efforts, share knowledge and experiences to leverage the emerging opportunities in the changing dynamics of the global economy.

 The Dubai Chamber reportstates that there are 38 million Islamic banking customers around the world with two thirds of them in Qatar, Indonesia, Saudi Arabia, Malaysia, UAE and Turkey (QISMUT).This group was the fastest growing markets for Islamic banking in 2012, with total Islamic banking assets commanded by the QISMUT reaching about US$567 billion and registering CAGR of about 16.4 per cent over the period 2008-2012.

Among these six prominent Islamic finance countries, Saudi Arabia is the biggest market in terms of Islamic banking assets with estimated value of US$285 billion in 2013 compared to US$245 billion in 2012. The research note shows that Saudi Arabia represents about 43 per cent of the total Islamic banking assets in all the six countries. The UAE is emerging as another serious player in this sector with total Islamic banking assets growing to about US$95 billion in 2013 compared to US$83 billion in 2012 while assets in Qatar grew from US$55 billion to US$68 billion during the same period.

The Dubai Chamber research also shows that, globally, Islamic banking profit pool is projected to reach US$30.5 billion by 2018 driven mainly by higher retail focus. In 2012, QISMUT Islamic banking profit pool wasestimated at US$9.4 billion and it is expected to reach US$26.4 billion by 2018.

Commenting on the findings, Ashruff Jamal, PwC Global Islamic Finance Leader, said: “A fundamental part of the global Islamic economy is the Islamic finance sector, which is witnessing rapid growth as Islamic financial institutions look to deploy their liquidity into regional and international expansion such as the acquisition of Barclay’s’ retail portfolio by Abu Dhabi Islamic Bank, and Dubai Islamic Bank’s acquisition of a 25 per cent stake in Indonesian Islamic lender Bank PaninSyariah. Another notable instanceis the recent announcement of an Islamic Exim (export-import) bank which will be the only institution of its kind in the world with three unique features; it will be Sharia compliant, trade based and run largely by the private sector.”

The Dubai Chamber report, however, points out that many Islamic retail banks suffer from lower profitability than the conventional banks, mainly due to higher expensesattributed to complex products, lengthy process steps and more interfaces. It is estimated that on average leading Islamic banks posted 19 per cent lower return on equity (ROE) than comparable conventional peers. The average ROE for the top 20 leading Islamic banks is about 12.6 per cent compared to an average of 15 per cent of comparable conventional banks, it states.

The Dubai Chamber research note supports recent indications that Islamic finance is extending reach, particularly in the Middle East and North Africa (MENA) region. According to Kuwait Finance House 2013 estimates, the MENA, excluding the Gulf Cooperation Council (GCC) states, remains the focal market for Islamic finance, with US$599.4 billion in total assets, followed by GCC with US$536.9 billion assets. Interestingly, Islamic finance is also gaining ground in North America and Europe with banking assets worth US$59.8 billion and total assets reaching US$71.6 billion in 2013, reflecting the industry success in transcending barriers to gain greater market share in new areas.

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About the 10th WIEF
The 10th World Islamic Economic Forum (10th WIEF) will be convened in Dubai, United Arab Emirates, a cosmopolitan metropolis that has grown steadily to become a global city and a business and cultural hub of the Middle East and the Gulf region.

The 10th WIEF is a high level platform for leading global government leaders, captains of industries, academic scholars, regional experts, professionals, corporate managers, policy makers, innovators, business leaders and investors to network and discuss opportunities for business partnerships in the Muslim world. The Forum will address a myriad of current economic and business related issues with the objective of generating innovative and creative solutions to transform the global economy and promoting business collaborations.

The Forum is expected to attract more than 2,500 participants from all around the world. It is in collaboration between the WIEF Foundation, Dubai Chamber of Commerce & Industry and Dubai Capital of Islamic Economy and will be held at the MadinatJumeirah Conference Centre Dubai on 28 – 30th October 2014, with an arching theme ‘Innovative Partnerships for Economic Growth’ which seeks to position Dubai as a leader of global halal industries.

For more information on the 10th WIEF, please visit our website atwww.10thwief.org

For media inquiries please contact:
Amr Diab, Nedal AL Asaad – ASDA’A Burson-Marsteller
T: +971 4 4507619 | [email protected]@bm.com

Originally published on www.zawya.com