A Strong Growth in Bank Deposits and Funds Granted11 Aug ,2014
Al Bayan Newspaper:
Dr. Mahmoud Sayed Abdulaal, C.E.O. of aafaq - islamic finance, said today that in the midst of all the financial results reported by Islamic finance institutions to date, funding by these Islamic companies has shown a positive and impressive growth and will continue to do so for the upcoming five years.
In addition: “I believe that currently we have a great opportunity to achieve positive growth in Islamic banking and finance in 2014 due to the sheer size of the work, the economic upturn, and the continuing growth spurt shown in bank deposits and funds granted.”
Dr. Abdulaal also pointed out that this sector is still young and is still being molded and shaped whilst being backed up by a substantial consumer demand for Islamic finance. Needless to say, the supply has still not caught up with this demand, although the economic flourish that U.A.E. has witnessed will be the quintessential drive for the growth of Islamic banks and finance companies, and will ensure the overall feeling of security and safety for the consumers in those institutions.
The regulatory financial board has also stated that Islamic finance sectors on a global and local scale have realized the importance of Sukuk, and that it has become the most noticeable and beneficial Islamic financial tool for long term Sharia complaint finance for all project development in the past 8 months of 2014.
Furthermore, the numerous versions of finance in the first half of this year, have shown a giant leap in performance, where in Dubai, Sukuk has shown a value of 22.23 billion USD (81.58 AED) in the stock market as opposed to the earlier value that floated between 8 and 9 billion USD.
Dr. Abdulaal also stated that, “The Islamic Finance industry is continuing to grow, backed up by the supply and demand, and the opportunities that have presented itself by the government on a global scale. We believe the Islamic finance industry will bear witness to four key areas in the upcoming four years. They will encompass: Promotion of financial stability in the region, Contribution in a more meaningful manner in the Real Economy, Expand the Product and Service benefits to gain more consumers, Improve research and development in the Islamic financial sector.”
Furthermore, the Central Bank of U.A.E. has a long term vision, well researched and thought out, that is intertwined with the current financial and economic events in the world today. Through the latest instructions and advice on Property Finance from Central Bank, it will become more feasible to offer security, regulation and control over loans/finances that previously lacked such attributes. A more definitive approach to the day to day activities of these facilities and services can be achieved. He also stated that, “Yes, there could be an impact on financial operations and property mortgages from a banking perspective, although it has not directly impacted banks and financial institutions thus far and they have continued to show a growth and tangible increases in profit, that have finally been witnessed by Central Bank. Thereby, the Central Bank of U.A.E. has issued strict warnings to all, in an attempt to prevent huge imbalances in the market that could negatively impact the country’s economy.