MANAMA: The consolidated assets of the Arab banks are set to reach $2 trillion with a projected net profit of $40 billion by the year-end, a senior official at the Union of Arab Banks, announced.
Adnan Ahmad Yousef, chairman of Union of Arab Banks, who attended the 2nd Arab-Greek Economic Forum last week in Athens, said that despite the economic upheaval, Arab banks would witness 15 percent annual growth in 2009.
Adnan, who is also chairman and chief executive of the Manama-headquartered AlBaraka Banking Group (ABG), said that the rapid growth of Arab banks had made them one of the most rapidly growing segments within the global banking system. "The balance sheet of Arab banks increased significantly in 2007 rising to $1.69 trillion, an increase of 30 percent over 2006. Our banking sector is made up of 470 institutions forming 267 commercial banks, 45 Islamic banks, 52 investment and national banks, 49 specialized banks and 57 foreign banks," he said.
This sector, he said, employed more than 370,000 employees scattered across some 15,000 branches around the world. The sector plays a great role in the Arab economy, where it finances production, trade and investment. "It is also considered an essential partner in enhancing economic and social development, and laying the solid grounds of our economy that is always aimed at constant growth and the availability of credit between different Arab economies," he said.
"As for Islamic finance the number of Islamic banks and institutions operating today in more than 75 countries in five continents is almost 300. Over 120 Islamic banks or 40 percent based in the Arab world and mainly in the GCC and their total assets reached more than $520 billion," he added.
The Arab banking industry, he said, has shown a sustained growth and development and more Arab banks are making it to the list of the top 1,000 banks. By the end of 2007, 80 Arab banks were on the list, when nine of them made it for the first time.
By Mahmood Rafique
© Arab News 2008
