Britain’s second-largest financial institution, Royal Bank of Scotland, is looking to introduce Islamic banking products and services to its customers in the Middle East, the bank’s head of the Middle East said.
“We are actively looking at introducing Islamic banking to our businesses in the Middle East in both retail and investment banking,” Colin Macdonald told in an interview in Dubai.
The region, home to the world’s biggest oil-exporting countries, has seen unprecedented prosperity as oil prices surged more than six-fold in as many years, triggering a boom in the Islamic banking industry.
Islamic finance industry is expected to hit $1tn by 2010 because of an increased global demand for Shariah-compliant financial products and services. Islamic banking assets are currently estimated at $750bn in value, according to Kuwait Finance House.
RBS sees high interest among British investors in the Islamic banking industry, especially in bonds and financing facilities.
Macdonald’s comments followed the announcement by the Edinburgh-headquartered bank that it had rebranded all the ABN Amro businesses it took over in the GCC states last year, including United Arab Emirates and Qatar.
Dutch bank ABN Amro had three branches and two electronic banking centers in the UAE and one branch at the Qatar Financial Centre. RBS has two representative offices in Dubai and Abu Dhabi and one branch in Qatar. “The bank is now in the process of merging the two QFC branches,” Macdonald added.