Dubai is growing as a financial centre that attracts investment and expertise from all points. Its Islamic banks are central to this economic narrative, as is the emirate’s participation in the international market for sukuks, a sharia-compliant alternative to bonds. Islamic finance has become a highly competitive market in Dubai and the emirate is angling to become a centre for sector studies and market development. Its banks look to improve their ability to thrive in an increasingly mature landscape,…
Islamic Financial Services
From The Report: Dubai 2015
View in Online Reader
Islamic finance is a highly competitive market in Dubai and the emirate is angling to become a leading centre for the sector. The UAE’s Islamic banks hold about 7% of global Islamic banking assets and have a market share of roughly 25% locally. The takaful segment has grown steadily since 2009 and this trend looks set to continue: total takaful contributions reached $1.16bn in 2013, up from $1.03bn in 2012. The UAE has been the world’s second-largest issuer of sukuk behind Malaysia, with $47.88bn issued between 1996 and 2013. Dubai has taken on a leadership role in shaping the future of sukuk as a financial instrument. In 2014 the emirate sponsored discussions and roundtables, with an eye to ultimately establishing a globally integrated sukuk market with harmonised structures that are less risky and easier for investors to understand.
This chapter contains an interview with Adnan Chilwan, CEO, Dubai Islamic Bank.