Islamic banks’ expansion in the Gulf region is continually outdoing the growth of conventional banks, while their performance is particularly strong in Qatar, according to estimates released by consultancy Ernst & Young.
Sharia-compliant assets at commercial banks in the six countries of the GCC climbed by 14.1% to $445bn at the end of 2012, confirmed by Ashar Nazim, Islamic financial services leader at Ernst & Young.
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Qatar’s Islamic banking assets were estimated to have grown more than 23%in 2012.
"We expect a relatively positive outlook for the Islamic banking industry in the GCC," the consultancy said.
Globally, the Islamic banking sector has posted a five-year average annual growth rate of 19% across the 22 major Islamic finance markets which Ernst & Young monitors.
New entrants into the industry have boosted assets from a low base, said Nazim.
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By GlobalDataIslamic banking assets at commercial banks reached $1.55trn worldwide at the end of last year, and are projected to exceed $2trn by 2015, estimates from Ernst & Young revealed.
