Islamic Financial Services
From The Report: Dubai 2013
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With global Islamic financial assets worth some $1.2trn at the end of 2011 and growth of 150% over the previous five years, Dubai has long been eager to take a bigger share of this rapidly expanding market. Indeed, the emirate has long been home to some of the region’s stand-out Islamic banks and insurers, with its sukuk – Islamic bond – market also of highly prominent international standing. Broadly speaking, despite the troubles following the global financial crisis, the largest Islamic banks in Dubai have begun to post solid results. Assets and liabilities continue to improve. In 2012 Islamic banks saw annual growth rates for deposits of around 15%, compared to 5% for conventional banking in the region. The financial picture for Dubai’s takaful companies is one of narrow margins and opportunities for future consolidation, as with the insurance sector. This chapter includes an interview with Adnan Chilwan, Deputy CEO, Dubai Islamic Bank.

Articles from this Chapter

Overview

Branching out: The emirate is consolidating its strong position regionally and globally
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With global Islamic financial assets worth some $1.2trn at the end of 2011 and growth of 150% over the previous five years, according to the UK Islamic Finance Secretariat, Dubai has long been eager to take a bigger share of this rapidly expanding market. Indeed, the emirate has long been home to some of the region’s stand-out Islamic banks and insurers, with its sukuk – Islamic bond – market also of highly prominent international standing. Yet the global financial crisis and its…

Interview

OBG talks to Adnan Chilwan, Deputy CEO, Dubai Islamic Bank (DIB)
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Interview: Adnan Chilwan How has the banking industry strengthened its position since the onset of the financial crisis? ADNAN CHILWAN: The financial downturn adversely affected the entire global financial industry. However, thanks to the decisive action taken by the UAE government in 2008, the country’s financial services sector is in a very strong position today. In recent years, the focus for banks and regulators alike has been to resolve underlying issues such as non-performing loans and…

Analysis

Sukuk success: The local market for Islamic bonds continues to rebound from its slump
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The sukuk (Islamic bond) market in Dubai saw some spectacular surges in 2012, with yields diving on high demand. This has echoed global trends that have thrust sukuks more into the international investment spotlight in recent times, with the global market hitting $20.5bn of issuance in the first half of 2012, up 36.7% on June 2011, according to HSBC Amanah. Indeed, “This is the year of the sukuk,” Michael Grifferty, from the Gulf Bond and Sukuk Association, told OBG. “This year, sukuk has…

Analysis

Capital backing: A welcome increase in capital-protected instruments
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As efforts to widen and deepen the pool of Islamic financial products continue, one area that has recently seen growth is capital-protected instruments. Both Dubai, and the UAE as a whole, have been keen to pursue this trend and boost choices among Islamic investors. One of the main challenges is the provision of sharia-compliant instruments for Islamic banks, insurers and asset managers to invest in, as such capital-protected products could be a major step forward. MECHANISMS AND MARKETS:…