Financial Services

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Chapter | Banking from The Report: Indonesia 2014

Banking remains a highly profitable sector in Indonesia despite being limited in its reach. Leading banks’ average profits were the highest amongst major economies in 2012, according to Bloomberg data, a remarkable feat in an era of falling bank profits globally. Credit plays a modest role in the Indonesian economy, with loans amounting to 32.85% of GDP. This is considerably lower than in many...

Chapter | Insurance from The Report: Indonesia 2014

Rising disposable incomes, consumption growth and sustained investment are key factors in the sector’s recent continued expansion and future potential growth. While still small compared to its potential, Indonesia’s insurance market is attracting global underwriters and reinsurers. The life segment, which comprised roughly two-thirds of premiums in 2012, is the market’s key growth driver. The...

Chapter | Capital Markets from The Report: Indonesia 2014

Growth in Indonesia’s stock market in recent years has been driven by the steady expansion in the total number of shares listed, which increased from 296 in 2008 to 479 by September 2013. Once dominated by commodities, such as mining, energy and agriculture stocks, the local market is now led by consumer-related shares, such as financial services, infrastructure and utilities. Domestic investors...

Home to some of the UAE’s most prominent Islamic banks and takaful (sharia-compliant insurance) operators, Abu Dhabi has long been a regional centre for Islamic financial services. Strong capital bases have raised the possibility of international expansion in recent years,...

Thanks to a competitive domestic banking market, the UAE’s relatively small population of around 9.2m and plentiful capital reserves, Abu Dhabi’s Islamic lenders are well positioned for international expansion. And in this regard, the two Abu Dhabi-based Islamic banks have already established a track record of success.

In 2012 Abu Dhabi’s insurance sector posted continued growth on the back of increased spending from consumers, corporations and the government. Across the UAE, gross written premiums (GWPs) reached Dh26.3bn ($7.16bn) in 2012, up 9.5% from 2011, according to the 2012 report from the UAE’s Insurance Authority (IA). The federation retained its...

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