Islamic banking is growing among the segments of society

15/4/2018 12:00 am

It operates in 75 countries
Baghdad / Al-Sabah
Islamic banking has made significant progress in terms of growth in the number of institutions, customers and assets since its inception in the late 1960s. The Islamic financial and banking industry is one of the fastest growing banking sectors, with growth exceeding the growth rate of the traditional banking sector. Improving service quality and innovating new products to reach a wider customer base.
Quantum leap
"Islamic banks have an essential role to play in achieving social development, making a qualitative leap in the banking world and stimulating economies and revitalizing them in accordance with Islamic Shari'a rules," he said.
He added that the number of institutions providing Islamic services in the world increased from about 955 in 2013 to 1,113 at the end of 2014, operating in 75 countries. According to Thomson Reuters, it divides all Islamic institutions and traditional institutions offering Islamic financial services through specialized windows.


Bank customers
Al Shammari said that according to the Islamic Banks Global Competitiveness Report 2016, the number of Islamic banking customers around the world has reached 100 million. However, 75.12% of the potential customer base for Islamic finance is still untapped and the sector still has a large capacity that can accommodate more customers.
small projects
He pointed out that the elements of attracting Islamic banking are that their relationship with the depositors is not based on credit and debt, but rather a relationship that confirms the sharing of risks in profits and losses. Islamic banks also aim to provide Islamic services to small and medium- Due to lack of guarantees required by banks and traditional institutions.


Financial system
Al-Shammari pointed out that the increase and expansion of the role of Islamic finance has enormous potential to enhance financial inclusion. Islamic banks constitute the most important and largest part of the Islamic financial system. The assets of these banks amounted to about 1,346 billion dollars in 2014, followed by Islamic bonds (Sukuk) amounting to 295 billion dollars And then Islamic insurance funds (or Takaful) (about 33 billion dollars), according to a report issued by a specialized institution.


World economies
He pointed out that after the repeated financial crises that hit most of the world's economies, investors began to search for mechanisms, solutions and non-traditional products to invest their money and wealth and
This has also helped in the economic boom witnessed by some Islamic countries recently, especially after the rise in oil prices, which led to the development and introduction of new Islamic financial products and alternative to traditional products attracted by many investors of all categories.
He stressed that the Islamic banking in Iraq is waiting for an investment environment through reconstruction and development, but should be interested in training its staff to be able to provide products that fit the Iraqi environment and can improve its services as long as the competition is severe between them and products provided by commercial banks.


Adaptation efforts
Al-Shammari said that in most countries where the banking system is double (ie, conventional and Islamic banking), it is subject to the same rules and regulations that it deals with commercial or conventional banks, because it does not understand or lack the proper understanding of the central banks of Islamic banking. Difficulty fixing errors or irregularities
Which requires adapting the efforts of the Central Bank to develop the banks' tanks, especially in the field of training, to prepare these cadres to be able to manage Islamic banking and product innovation.
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