Sunday, Dec 11, 2011
Dubai Standard Chartered Saadiq, the Islamic banking arm of Standard Chartered Bank, yesterday said it is looking at opportunities to expand into newly-opened Islamic banking markets such as Oman and Nigeria and is closely evaluating the opportunities in the Middle East and North Africa (Mena) region.
“We are looking at opportunities in Oman and Nigeria, the two newly-opened markets for Islamic finance. The bank is likely to take a decision on entry into these markets sometime next year,” said Wasim Saifi, Global Head, Islamic Banking (Consumer Banking) of Standard Chartered Saadiq.
While Middle East markets, particularly those in the Gulf, have huge growth potential, Saifi said, the recent political changes in the Mena region have opened up a big market for Islamic finance.
“In many of the established markets for Islamic finance, such as the Gulf, Malaysia, Bangladesh, Pakistan and Indonesia, more than 80 per cent of Muslims still bank with conventional banking. The growing awareness of Islamic banking combined with innovative product offerings can increase the market share of Islamic banking in these markets,” said Sultan Ali Haider, General Manager, Islamic Banking (Consumer Banking).
In most markets, with the exception of Qatar, both Islamic banks and Islamic windows of conventional banks offer Islamic banking products and services. Currently Islamic windows and subsidiaries of conventional banks account for more than 30 per cent of Islamic banking assets. With the opening up of new markets in Mena and Africa, Standard Chartered expects significant growth in the asset size of both Islamic banks and the Islamic banking operations of conventional banks.
According to Ernst and Young’s inaugural World Islamic Banking Competitiveness Report 2011, published last month, Islamic banking’s market share of all banking assets in the Gulf crossed the 25 per cent threshold in 2011. Islamic banking assets with commercial banks globally are expected to reach $1.1 trillion (Dh4.03 trillion) next year, a 33 per cent jump from $826 billion in 2010.
By Babu Das Augustine?Deputy Business Editor
Gulf News 2011. All rights reserved.
