Islamic banks are growing at an annual rate of 23 per cent globally, outpacing the 10 per cent set by conventional banks, and will attract half of all Islamic funds world-wide within a decade, according to a top Islamic baker.
"Islamic deposits in the Gulf investment accounts have more than doubled in the past five years due to increase in oil prices resulting in a rise in the Sukuk market and new banking job opportunities," said Ahmed Darweesh bin Dagher Al Marar, managing director, Abu Dhabi Islamic Bank (ADIB).
The projections were made as a research partnership was announced  between ADIB — the Islamic financial institution operating in accordance with Shariah principles — and the Oxford Business Group (OBG) to produce analysis of the UAE capital's Islamic Financial Services sector to date.
"This spark of Islamic Banking has created new opportunities in the region's finance industry, and working with OBG, we aim to help inform the market on the benefits of Islamic Banking," said Al Marar.
"The first modern Islamic finance institutions were formed about 20 years ago. Today there are over 300 such institutions around the world with total assets in excess of $300 billoion," said Patrick Wrigley, editorial manager, OBG.
"The vitality of the Islamic market in Abu Dhabi has stirred other commercial banks to find ways to enter the market; so the range of customer options is growing steadily."
ADIB reported a net profit of Dh571 million at the end of 2006 — a growth of 66 per cent compared to the same period of 2005. The bank will act as research partners for the Islamic Financial Services chapter of OBG's 'Abu Dhabi 2007: The Report' guide, the successor to the internationally acclaimed 'Emerging Abu Dhabi'.
"This is the first year we have had a dedicated chapter on Islamic Financial services and we believe that working with a leading Islamic financial institution in the region will give key decision makers the information they need to make sound financial choices, " said Tatjana Marinko,  Abu Dhabi director, OBG.
"We recognise the value of our partnership with a professional sector leader and believe that the link allows our partners to enhance their brand name internationally as our annuals are considered to be among the most prestigious economic intelligence publications available," Marinko explained.