Financial Services

Investors on the Amman Stock Exchange (ASE) received a much-needed fillip recently when the government announced plans to step in to help some local companies that are facing financial difficulties.

Several leading Omani banks have recently moved ahead with plans for large bond issues, with this underscoring the broader confidence in the banking sector at a time of sustained high oil prices and positive economic growth.

The Islamic financial sector in Indonesia is hoping a mix of state-backed infrastructure projects and regulatory reforms will help the country’s sharia-compliant lenders to continue their rapid expansion, allowing the industry to realise its full potential and to come out of the shadows of other regional banking powers.

Competition looks set to continue heating up in the Islamic finance sector, with the latest entrant to the market, Saudi giant Al Rajhi Bank, opening for business in late March. As new players work expand their reach, sharia-compliant financial services will become increasingly accessible for Jordanian customers, while meeting the Basel III capital adequacy and risk-management requirements will remain a top priority for the banks.

The conservative approaches to money management employed by for four Sharjah-based lenders have paid off judging by their year-end financial statements for 2010, which have recently been released.

The banking sector in Sabah – already well-managed and capitalised – seems poised for a positive performance in 2011, but consumers will also benefit from an increase in competition. With strong economic fundamentals in place on the back of high crude palm oil (CPO) prices (which tend to broadly track those of regular crude oil) and a burgeoning local tourism sector, Sabah’s financial services market is attracting growing interest from foreign players.