Islamic Financial Services
From The Report: Bahrain 2013
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Global Islamic banking assets were pegged at about $1.3trn in 2011 but are expected to rise to as much as $1.8trn by the end of 2013. As such, Islamic banks are seeking to diversify the sharia-compliant financial instruments they offer. Leaders throughout the region are starting to look toward sukuk, or Islamic bonds, for infrastructure finance as an aid to development, and while it is currently a less developed segment of Islamic financial services, takaful, or sharia-compliant insurance, is following the general growth pattern being experienced by Islamic banks across the globe.

This chapter contains interviews with Mohammed A Rahman Bucheerei, CEO, Ithmaar Bank; and Aabed Al Zeera, CEO, International Investment Bank.

Articles from this Chapter

Overview

Spring forward: Consolidation and greater overall capacity will boost performance
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As one of the world’s leading centres for Islamic finance, Bahrain hosts a wider variety of sharia-compliant financial services companies than perhaps anywhere else, and as in other areas in the Bahraini financial services industry these are aimed not only at the domestic economy but to customers from the region and beyond. As 2013 progressed, Islamic finance as a suite of products was enjoying asset growth and increased market penetration in existing strongholds, as well as eyeing new markets…

Analysis

Come together: Recent mergers have set a good example for the future
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It is said frequently that mergers and acquisitions are difficult because of the culture of the Gulf – family owned businesses that are part of conglomerates are difficult to part with for founders who have an emotional connection to them, or who do not want others to equate their decision to sell with weakness. Another factor is that such owners typically have few minority shareholders to answer to, and that may prompt them to hang on longer. In many cases in the Gulf outside capital is not…

Interview

OBG talks to Mohammed A Rahman Bucheerei, CEO, Ithmaar Bank
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Interview:Mohammed A Rahman Bucheerei To what extent is consolidation a necessary strategy across the Islamic banking sector? MOHAMMED A RAHMAN BUCHEEREI: Consolidation is key to continued success in an ever-increasing competitive environment. Having said that, I must also stress that the issue of consolidation is perhaps best addressed by the regulator, the Central Bank of Bahrain (CBB), which has earned an international reputation for prudence and excellence. The CBB is aware of individual…

Interview

OBG talks to Aabed Al Zeera, CEO, International Investment Bank (IIB)
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Interview: Aabed Al Zeera How can Islamic financial institutions attain the critical mass necessary to better meet the needs of the real economy? AABED AL ZEERA: The Islamic financial industry is evolving, with countries in various stages of development. Islamic finance has its roots in the “asset-backed” concept, which has worked well in the post-financial crisis environment, with most financial institutions, whether Islamic or conventional, reverting to the asset-backed concept and away from…

Analysis

Bright future: The market for Islamic bonds is promising
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Bahrain is among the world’s focal points for Islamic finance and sukuk, a sharia-compliant bond, which has been among the most important and visible Islamic instruments worldwide. The outlook for sukuk markets was increasingly positive in early 2013, as the asset class distanced itself from the 2007-08 global financial crisis. The upswing in confidence has come about thanks to a number of factors. The European debt crisis is a major contributor: investors in fixed-income securities have…