Islamic Financial Services
From The Report: Abu Dhabi 2015
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Demand-driven growth is expected to continue in the Islamic financial services sector, with sharia-compliant assets making up some 21.4% of the UAE’s banking system in 2013, up from 17% in 2012, and crossing the $100bn mark for the first time. Abu Dhabi’s takaful operators are playing their part in the growth of the UAE industry, which has seen the nation become the second-largest provider of takaful contributions in the GCC. Meanwhile, between January 1996 and September 2013, the UAE was the source of some 73 Islamic bond issuances for a total value of $47.9bn – placing it second only to Malaysia in terms of global sukuk activity. Overall, the growth of the UAE’s non-hydrocarbons sector, low interest rates and the firming up of real estate prices have resulted in a positive outlook for the nation’s banking sector, with Abu Dhabi’s sharia-compliant institutions well placed to capitalise on this anticipated expansion.

This chapter contains an interview with Tirad Al Mahmoud, CEO, Abu Dhabi Islamic Bank.

Articles from this Chapter

Overview

Demand-driven growth is expected to continue
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It has been a strong year for Abu Dhabi’s Islamic financial services (IFS) sector, which is successfully overcoming the systemic challenges that had arisen during the 2008-09 global economic crisis. Robust financial results from the emirate’s two sharia-compliant banks, a continuation of innovative sukuk (sharia-compliant bonds), issuance and the growth of Islamic funds, has allowed Abu Dhabi to further cement its position in the global IFS industry. Market Structure Some 21.4% of the UAE’s…

Interview

OBG talks to Tirad Al-Mahmoud, CEO, Abu Dhabi Islamic Bank
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Interview: Tirad Al-Mahmoud To what extent has the development of comprehensive Islamic product offerings achieved parity with conventional offerings? TIRAD AL-MAHMOUD: The effect of globalisation is pushing Islamic banks to innovate, as they are now competing fiercely with conventional banks. As a result they are now providing customers with a wider product offering and have not only achieved parity with many products offered by conventional banks, but have in fact outperformed them. This is particularly…

Interview

OBG talks to Tirad Al-Mahmoud, CEO, Abu Dhabi Islamic Bank
OBG
plus

Interview: Tirad Al-Mahmoud To what extent has the development of comprehensive Islamic product offerings achieved parity with conventional offerings? TIRAD AL-MAHMOUD: The effect of globalisation is pushing Islamic banks to innovate, as they are now competing fiercely with conventional banks. As a result they are now providing customers with a wider product offering and have not only achieved parity with many products offered by conventional banks, but have in fact outperformed them. This is particularly…

Analysis

The emirate has established itself as a key sukuk market
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The rise of sukuks (Islamic bonds) as an alternative to conventional bonds has been an interesting trend in the Islamic financial services (IFS) sector. Starting from its initial flourishing in Malaysia and the GCC, the sharia-compliant instrument is gaining popularity in its traditional markets, and is being viewed with increased interest in countries such as Morocco, Tunisia, Nigeria and South Africa. In 2014 Thompson Reuters estimated the global sukuk market to be worth around $237bn, and in…