Islamic finance: Size will matter in Islamic banking
Data from the Islamic Finance Information Service indicate that rapid growth of Shariah-compliant banking comes mostly from a low base. Is the sector set for a wave of consolidation as organic growth slows? Chris Wright reports.
|Top 10 Islamic banks|
|Figures in $ at December 31 2007|
|Rank||Country of incorporation||Bank||Total assets 2007|
|1||Saudi Arabia||Al Rajhi Bank||33,372,165,720|
|2||Kuwait||Kuwait Finance House||32,103,331,547|
|3||UAE||Dubai Islamic Bank||22,803,738,851|
|4||Qatar||Qatar Islamic Bank (Al Masraf)||5,877,150,653|
|5||Malaysia||Bank Islam Malaysia Berhad||5,772,492,125|
|6||Saudi Arabia||Aljazira Bank||5,762,328,873|
|7||UAE||Emirates Islamic Bank||4,616,888,499|
|8||Saudi Arabia||Albilad Bank||4,445,428,630|
|9||Malaysia||Bank Muamalat Malaysia Bhd||4,170,517,368|
THERE ARE 300 Islamic banks operating in the world today. But this statistic, ubiquitous in presentations about the growth of Islamic banking, is not an entirely positive number: it’s far too high.
Islamic banking is enormously fragmented. At the top end, there are: Al Rajhi Bank, with $33.3