GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Banking and Investments

 
  Share

Islamic banks' gross credit increased 8.4 per cent to Dh343 billion in the first quarter of 2017, including Dh325 billion domestic credit that grew 7.4 per cent that will help the UAE's Halal Economy to grow faster than non-Halal sectors 

Dubai, UAE, June 29, 2017 

Key Announcements: 

  • Islamic banking assets grew 3.2 per cent in the UAE to Dh522 billion quarter-on-quarter in the first quarter of 2017, up from Dh506 billion in the fourth quarter of 2016, UAE Central Bank report says 
  • Islamic banks' gross credit increased 8.4% to Dh343 billion in the first quarter of 2017 
  •  Islamic banks' domestic credit grew 7.4% to Dh325 billion in Q1, 2017, which is expected to fuel the growth of the Halal sector 
  • UAE's Islamic banking assets are growing faster than that of the conventional banks 
  • Islamic banking assets represent nearly a fifth or 19.7% of the total banking assets in the UAE 
  • Halal banking assets in the UAE to touch Dh1 trillion by 2020 
  • The UAE's Dh522 billion Islamic banking assets will help fuel the growth of the country's Halal sector, according to research conducted by Orange Fairs and Events, organisers of the Halal Expo Dubai 2017. 

Seven Islamic banks out of the 23 registered commercial banks in the UAE represent nearly a fifth of the country's banking assets. Islamic banks' assets grew more than 3 times of the Conventional banks' assets during the first quarter of 2017, according to the UAE Central Bank's latest quarterly report. 

“In the first quarter of 2017, Islamic banks' assets had a higher growth (3.2%) than the Conventional ones (1%), while on an annual basis Islamic banks grew by 8 per cent and continued to dominate the Conventional banks growth that showed an increase of 5.9 per cent,” the report, issued by the UAE Central Bank, said. 

“The share of Conventional banks' assets at the end of 2017 Q1 is 80.3 per cent of the total, while the share of the Islamic banks assets is 19.7 per cent. Islamic banks' financing growth has been dominating the Conventional banks' loans increase in the first quarter of 2017 in almost all subcategories, with exception of financing to Government and GREs.” 

Gross credit of the Islamic banks in the UAE recorded a 8.4 per cent growth to Dh343 billion – or nearly double the rate of 4.4 per cent growth rate of gross credit of the Conventional banks in the first quarter of 2017. 

Similarly, domestic credit growth of the Islamic banks also rose 7.4 per cent to Dh325 billion in the first quarter of 2017. The growth rate is nearly double than the 4.1 per cent growth in domestic credit growth of the Conventional banks. 

Higher assets and gross credit growth rates empower the Islamic banks to fund the Halal industries and help fuel the growth of Halal or Islamic economic activities. By nature, Islamic banks engage in ethical finance and asset-based lending – that eliminates speculation-based high-risk financial activities and insulate the sector from economic crises – witnessed during the 2008-09 global financial crisis – when the asset-based ethical finance emerged stronger and helped Islamic banks to overcome the stress tests by a wider margin compared to the Conventional lenders – many of whom collapsed and had to be bailed out by governments. 

Islamic banks' credit to individuals recorded a 7.6 per cent to Dh126 billion in the first quarter, compared to 2 per cent growth in the Conventional banks' credit to individuals that reached Dh224 billion in the first quarter of 2017. 

Mr. Raees Ahmed, Director of Orange Fairs and Events, organiser of the Halal Expo Dubai, 2017, says, “This means Islamic banks' personal finance, Islamic credit card sector is growing at a higher rate than that of the Conventional banks' personal finance and credit card segment. 

“The split between Conventional and Islamic banks indicates that the growth in Islamic financing is much steeper than that for the Conventional banks' loans. This effectively means that lending in the Halal sector is going up at a much higher rate than that of the non-Halal sector, as was evident in the first quarter of 2017. 

“Islamic banks' credit to the business and industrial sector grew 7.6 per cent to Dh151 billion in the first quarter of 2017. This means that the credit growth to the Halal industries and business sector remains higher compared to the non-Halal industries and services sector. This is also a reflection of the UAE's growing importance as a centre of the global Halal Economy. 

“Besides, the growing global awareness on healthy food, consciousness on cleanliness and hygiene environment is helping the growth of the Halal sector – that promotes healthy, organic, clean and hygienic products and thus protects life from the ill-effects of food and consumables,” Mr. Raees Ahmed says. 

The 9th edition of the Halal Expo – Dubai 2017, will be held at the Roda Al Bustan hotel from September 18 – 19, 2017, organisers Orange Fairs and Events, announced. 

Halal Expo Dubai 2017 is the largest and most comprehensive Business-to-Business (B2B) halal exposition in the Middle East for the US$2.3 trillion global halal industry. The event, which attracted participation from 13 countries in its previous edition and registered 3,700 trade visitors from 40 countries, expect larger trade participation where buyers and sellers of halal products and services are expected to do brisk business. 

Halal Expo Dubai focuses on a number of business verticals, including, halal food, halal beverage, halal fashion, halal cosmetics and personal care products, halal travel and tourism, halal hospitality, halal banking and finance. 

This State of the Global Islamic Economy Report, 2016-17, estimates global Muslim spend across sectors at over $1.9 trillion in 2015, while the Islamic Finance sector has around $2 trillion in assets. 

Food and beverage tops spend by the global Muslim population, at $1.17 trillion in 2015, followed by clothing and apparel at $243 billion, media and recreation at $189 billion, travel at $151 billion, and spending on pharmaceuticals and cosmetics at $133 billion. 

The report estimated the revenues from Halal Certified food and beverage products to be $415 billion; while revenues from halal fashion clothing purchased by Muslim women to be $44 billion and revenues derived from halal tourism services to be $24 billion, in 2015. 

“Financing of Halal industries and businesses are expected to get a solid boost with the stronger growth in Islamic banking sector in the UAE and the Halal Expo – Dubai 2017 will help global Halal businesses gather under one roof and explore business opportunities,” Mr. Raees Ahmed says. 

“Interestingly, non-Muslims are also fast accepting halal products and services due to the scientific, hygienic benefits and ethical aspects. The term halal is gradually becoming an universal concept, more than an Islamic way of life. 

“In this regard, Halal Expo is expected to play a crucial role in promoting halal, healthy, clean and green lifestyle movement across the Gulf region. We expect more than 100 business entities from 13 countries to participate at the two-day exhibition that will showcase the latest trends in halal products and services worldwide.” 

The global halal products and services sector is growing at 8 per cent year-on-year to US$2.3 trillion (Dh8.44 trillion) – higher than the GDP of more than 200 countries in the world, according to research conducted by Orange Fairs and Events, organisers of the Halal Expo – Dubai, 2017. 

Of this, about 67 per cent represents the food and beverage industry, worth US$1.4 trillion (Dh5.13 trillion). 

Halal Expo – Dubai 2017 will be open to business visitors for sourcing products and services from 10:00 to 18:00 hours, September 18 and 19, 2017 at the Roda Al Bustan Hotel – near Dubai International Airport, Al Garhoud Area. More than 100 companies from 15 countries Kazakhstan, Malaysia, Indonesia, Poland, Pakistan, Switzerland, India, UK, Brunei, Philippines, South Africa, China and many more are expected to join the show. 



Posted by : GoDubai Editorial Team
Viewed 12950 times
Posted on : Thursday, June 29, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Heathrow and Travelex Launch New Appointment Service for VAT Refunds
Next Story : Cisco and NetApp Advance Digital Transformation with Software-Defined Converged Infrastructure Solut...
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Mouawad Acquires The 51.38 Carat Dynasty Diamond From ALROSA
Panasonic's latest LUMIX DMC-TZ220 is the Ultimate Travel Companion
Introducing the GUESS Jeans Fall 2018 Collection
Cerruti 1881 MOLVENO timepiece and cufflinks
Build Your Perfect Skincare Routine with Essentials from Glambeaute.com
Kaya Skin Clinic's Expertise is pushing the Boundaries of Botox
Joyalukkas brings joy to hundreds around the world with summer gold bar giveaway
How to choose the right mascara
Tissot Chrono XL NBA Team Collection Sporty Gets Smart
Hour Choice presents Coach Astor Collection
Creating #futureclassic: Swatch Launches Skin Irony Collection
Head to Modhesh World for Summer Fun Before the School Run
Favourite florals: Bloom with our top floral picks from bebe
Carl F. Bucherer Presents Adamavi Collection
Delicious Whole Cakes at Sophie's Café from AED99
Nazih Introduces New Dr. Renaud Skincare Range
Business Wear by Hugo Boss
13 Emirati Authors Launched into the Portuguese Book Market
The new Rado HyperChrome Chronograph in bronze and high-tech ceramic
Never Run Out of Space for Those Joyful Summer Holiday Memories With Western Digital
Al-Futtaim Honda launches Next Change programme to reward loyal customers
Five Awesome Reasons to Visit LEGOLAND® Dubai During the Eid Al Adha Holiday
Back-to-School Shopping Made Easy with SOUQ.com
The Marriott International cyclist team completes 600km R2A cycle challenge
New Addition to the HUAWEI Nova 3 Series: On-trend and fashionable HUAWEI nova 3...
Calligraphy, etching and Palestinian embroidery: Learn it all at Tashkeel this S...
Spectacular live entertainment for the entire family at Majid Al Futtaim malls i...
Eid Gift Guide 2018
Big Android Breakthrough: Huawei's power packed GPU Turbo upgrade will turn you...
‘The Little Things' That Makes Summer All The More Enjoyable
XTouch Announces the Launch of the Robot Family Range of Rugged Mobile Phones
MEFMA reaffirms commitment to promote entrepreneurship & innovation across local...
Let your kids enjoy some dancing at James & Alex Dance Studios
du LaLiga HPC Top Talents Arrive in Spain for 21-day Annual Scouting Camp
Eberhard & Co. immortalizes a legend
Trend Alert! Clueless About Plaid? kate spade Found Fresh Ways to Showcase the G...
The 2nd Edition of the Phanes Group Solar Incubator set to kick off 7th August 2018
Hilton Launches New Platform Dedicated to Offering Guests Bespoke, Unforgettable...
OMEGA Showcases its Passion for Golf at the 2018 PGA Championship
Traditional Thali Indulgence at Antique Bazaar
Danube Properties' Dh550 million Lawnz project at International City, sold out i...
VIP Golf Austin Offers Golf Packages For the Avid Tourist
The Moon Collection From Lacoste
Dubai Judicial Institute collaborates with Union Coop to support the 7th Dubai J...
FREE DANCE WEEK is back at James & Alex Dance Studios
Celebrate India's Independence Day with Sparkles of India
Fitness in DXB to Launch ‘the Pursuit of Happiness' Evening for Yoga and Inspiration
Dubai Tourism Publishes ‘12 Steps Towards Sustainability' Manual to Guide Hotels...
Eyesight restored in a rare case of Optic Neuritis
The new Hamilton Khaki Field Mechanical