A Predicted Rise in Islamic Banks

A Predicted Rise in Islamic Banks

An expert in the Islamic finance sector predicted a rise in the market share of Islamic banks by 15 per cent in the year 2013 especially at the region of the Arab countries because of the large and growing demand by customers for these banks.

Islamic banking (bank) is banking activity that is consistent with the principles of Sharia Law and its practical application through the development of Islamic economies. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees (known as Riba) for loans of money

The Islamic Finance expert Mr. Fouad Muhaisin said in a statement to CNN: “Current figures for the growth of the size of the Islamic banking sector exceeded all expectations in previous years to grow to over 25 per cent.”

Mr. Fouad Muhaisin pointed that “The global financial crisis that hit many countries in the world, especially in the United States of America and Europe, which had observed implications in various Arab countries pushed bankers and clients to the selection of Islamic banks which are not based on the same banking foundation which led to the collapse of many American and European banks.”

Muhaisin noted that many Arab countries began to shift to a system of Islamic banking as a result of the Arab revolutions or what has become known as the Arab spring, such as the Libyan, Egyptian and Tunisian banking systems; also this is expected to occur Syria.”

The Egyptian TV reported that the Secretary General of the Arab Banks Union, Wissam Fattouh, forecasted that the next phase is witnessing a dramatic rise in the Islamic banking system, by the end of 2013 of up to 40 per cent of total Arabic banking assets.

Mr. Fattouh added in his forecast report that the total assets of banks operating in the Arab countries is expected to rise to $ 2.6 trillion while the value of the assets of Islamic banks will be about $ 1.2 trillion.

Generally speaking about the Islamic banking industry since its start in the early seventies, we would say that the industry was able to make a revolution in the banking system during the modern financial history with being able to reach estimated billions of dollars in size within a very short period of time.

Islamic banking today has proved a distinct presence, since it was based only on individual experiences here and there, until it became a major part of the international banking financial system. Islamic banks today have standards and principles, which govern its activities and govern the conducting of its operations.

Today the number Islamic banks and financial institutions, operating in more than 60 countries in the five continents, is approximately about 300 Islamic bank and institution around the world, with about 40 per cent in the Arab countries, specifically in the Gulf countries.

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