Islamic Financial Services

With global Islamic financial assets worth some $1.2trn at the end of 2011 and growth of 150% over the previous five years, Dubai has long been eager to take a bigger share of this rapidly expanding market. Indeed, the emirate has long been home to some of the region’s stand-out Islamic banks and insurers, with its sukuk – Islamic bond – market also of highly prominent international standing. Broadly speaking, despite the troubles following the global financial crisis, the largest Islamic banks in Dubai have begun to post solid results. Assets and liabilities continue to improve. In 2012 Islamic banks saw annual growth rates for deposits of around 15%, compared to 5% for conventional banking in the region. The financial picture for Dubai’s takaful companies is one of narrow margins and opportunities for future consolidation, as with the insurance sector. This chapter includes an interview with Adnan Chilwan, Deputy CEO, Dubai Islamic Bank.