Islamic banks are growing at an annual rate of 23% globally, far outpacing the 10% set by conventional banks, and will attract half of all Islamic funds world-wide in as little as a decade, according to a top Islamic Banking MD in the UAE capital.
“Islamic Deposits in the Gulf investment accounts have more than doubled within the past five years, resulting in the increase in oil prices due to excess liquidity from increasing projects, the rise in the Sukuk market, and new banking job opportunities,” said Ahmed Darweesh Bin Dagher Al Marar, Managing Director, Abu Dhabi Islamic Bank (ADIB).
The projections were made as a top level research partnership was announced between ADIB – the Islamic financial institution operating in accordance with Shari’a principles - and the Oxford Business Group (OBG) the UK-based publishing, research and consultancy conglomerate to produce the most authoritative analysis of the UAE capital’s Islamic Financial Services sector to date.
“This spark of Islamic Banking has created new opportunities in the region’s finance industry, and working with OBG, we aim to help inform the market on the benefits of Islamic Banking,” said Mr Ahmed Darweesh Al Marar.
“The first modern Islamic finance institutions were formed about 20 years ago. Today there are over 300 around the world with total assets in excess of $300bn,” said Patrick Wrigley, Editorial Manager, OBG. “The vitality of the Islamic market in Abu Dhabi, has stirred other commercial banks to find ways to enter the market so the range of customer options is growing steadily.”
ADIB, who reported a Net Profit after Distribution to Depositors of AED 571 million at the end of the year 2006- a growth of 66% compared to the same period of 2005 - will act as research partners for the Islamic Financial Services chapter of OBG’s ‘Abu Dhabi 2007: The Report’ guide, the successor to the internationally acclaimed ‘Emerging Abu Dhabi’.
“This is the first year we have had a dedicated chapter on Islamic Financial services and we believe that working with a leading Islamic financial institution in the region will give key decision makers the information they need to make sound financial choices, “ said Tatjana Marinko, Abu Dhabi Director, OBG.
“We recognise the value of our partnership with a professional sector leader and believe that the link allows our partners to enhance their brand name internationally as our annuals are considered to be among the most prestigious economic intelligence publications available,” Marinko explained
Written by a team of international analysts based on the ground for six months, the 230-page research-based book is widely anticipated with forward subscriptions up 10% on last year’s inaugural edition and a projected world wide distribution of over 75,000.
‘Abu Dhabi 2007: The Report’ will be available in the second quarter of this year.
About Oxford Business Group
Oxford Business Group (OBG) is a UK-based publishing, research and consultancy services organisation. OBG publishes economic and political intelligence on the markets of The Middle East, Eastern Europe, North and South Africa, and Asia. Through its range of print and online products, OBG offers comprehensive and accurate analysis of political, macroeconomic and sectoral developments, including banking, capital markets, energy, infrastructure, industry and insurance.
Written by a team of seasoned analysts, based on the ground for six months, the critically acclaimed series of economic, political and business reports have become the leading source of intelligence on the rapidly developing countries in the regions they cover. OBG’s online economic briefings provide up-to-date in-depth analysis on the issues that matter for thousands of subscribers worldwide. OBG’s consultancy arm offers tailor-made market intelligence and advice to firms currently operating in these markets and those looking to enter them.
About Abu Dhabi Islamic Bank
Abu Dhabi Islamic Bank (ADIB) was the second Islamic Bank established in the UAE and the first for Abu Dhabi on May 20, 1997, commencing operations on November 11, 1998 as a Public Joint Stock Company under Amiri Decree No. 9 of 1997. Governed by Islamic principles and Shari’a Law in the conduct of its business, ADIB was founded with a capital of AED 1.5 billion - with founding shareholders including ADIA, members of the ruling family and UAE nationals - and has been one of the most actively traded stocks on the Abu Dhabi Securities Market.
ADIB has grown rapidly, and is currently ranked 9th in terms of total assets – AED 36.3 billion with customers’ deposits reaching 24 billion at the end of 2006 - among the 46 banks operating in the UAE. Rated (A) by FITCH, and (A2) by MOODY’S, ADIB currently has a network of over 36 branches, 74 ATMs and a workforce of over 1228 employees.
ADIB established the first Islamic insurer in Abu Dhabi (Abu Dhabi Takaful Company) in 2003, Real Estate Company, Burooj, and Abu Dhabi Finance Services (ADIFS). ADIB also participated in the establishment of new companies such as Manazel, Emirates and Sudan Bank and Al Salam Bank.
