Emirates Islamic on Monday launched the UAE’s first Islamic Banking Index. Its findings highlighted a significant opportunity for the growth of Islamic banking in the UAE.
The Index was unveiled by Emirates Islamic Bank chief executive officer (CEO) Jamal bin Ghalaita at the 2015 Global Islamic Economy Summit (GIES).
“The creation of the index by Emirates Islamic Bank marks a new chapter in how we measure the development and growth of Shariah-compliant banking in the UAE,” bin Ghalaita said.
Talking to reporters, he mentioned that Islamic banking is for all as “our doors are open for all”.
The new index will provide an annual benchmark of shifts in the “penetration, perception, knowledge and intention” of UAE consumers towards Shariah-compliant banking.
“By analysing four key indicators [penetration, perception, knowledge and intention], we have created for the first time a benchmark that brings together perception and reality on the status of the Islamic banking industry in the UAE. In doing so, the index reveals more than just the attitudes and opinions of people in the UAE towards Islamic banking – it also creates a pathway to the solutions that will enable us to drive the continued growth of Islamic banking in the UAE,” the CEO said.
Findings of a survey show that 47 per cent of the UAE’s banking consumers have enrolled for at least one Islamic banking product. Around 34 per cent of the UAE’s banking consumers have an Islamic product from an Islamic bank.
Islamic banking has higher shares in auto finance and savings account product categories.
Twenty-six and 27 per cent of the respondents have expressed their intention to acquire an Islamic and conventional banking product respectively in the coming six months.
Seventy-five per cent of all respondents are open to Islamic banking products; 86 per cent of Muslim respondents and 59 per cent of non-Muslim respondents are open to Islamic banking products.
Bin Ghalaita said: “With three out of four people in the UAE willing to consider an Islamic banking product, there is clearly an opportunity for the industry as we continue on our path to become the global centre of Islamic economy.
“Trust, fairness and community responsibility are the core pillars of the Islamic banking proposition and people associate with that. Yet, the same consumers also want the best products, technology and service. This is also our call to action.”
Originally published on http://www.albawaba.com