UAE, July 15: The International Monetary Fund, in its latest report, has admitted growth of Islamic finance and banking in the United Arab Emirates. “UAE is also a major hub for Islamic bond issuances―during 2001–15, $53.8 billion or 36 percent of all global sukuk issuances originated in the UAE,” said IMF in the report released on 14th July.
“The UAE banking system is well developed and strong. Its 59 banks provide a full range of services to their clients. The banking system is large, with total assets amounting to AED 2.6 trillion or 204 percent of GDP at end-March 2017. The banking system is concentrated, with the largest three banks holding over 50 percent of total assets of the banking system. Banks are adequately capitalized and profitable…,” said IMF.
“Islamic banking is developing rapidly with some of the world’s largest Islamic banks headquartered in the country. Islamic banks in the UAE had assets of AED 522 billion or 20 percent of total bank assets at end-March 2017,” said International Monetary Fund.
“Capital market development—including the development of Islamic finance—is important to allow companies, governments, and GREs to reduce their reliance on bank financing,” the report on UAE said.