Emirates Islamic, a UAE-based Islamic financial institutions, has launched the Islamic Banking Index by Emirates Islamic, a consumer focused survey on Islamic Banking in the UAE.
The bank said that the new index will provide an annual benchmark of shifts in the ‘penetration’, ‘perception’, ‘knowledge’ and ‘intention’ of UAE consumers when it comes to Shari’a compliant banking.
Emirates Islamic CEO Jamal Bin Ghalaita said: "The creation of the Islamic Banking Index by Emirates Islamic marks a new chapter in how we measure the development and growth of Shari’a compliant banking in the UAE.
"By analyzing four key indicators, (penetration, perception, knowledge and intention), we have created for the first time, a benchmark that brings together perception and reality on the status of the Islamic banking industry in UAE. In doing so, the index reveals more than just the attitudes and opinions of people in the UAE towards Islamic Banking – it also creates a pathway to the solutions that will enable us to drive the continued growth of Islamic banking in the UAE."
The survey found that 47% of the UAE’s banking consumers have enrolled for at least one Islamic banking product. Nearly one-third (34%) of the UAE’s banking consumers have an Islamic product from an Islamic bank.
Islamic banking has higher shares in auto finance and savings account product categories.
Twenty-six and 27% of the respondents expressed their intention to acquire an Islamic and conventional banking product respectively in the coming six months.
Nearly 75% of all respondents said they are open to Islamic banking products; 86% of Muslim respondents and 59% of non-Muslim respondents are open to Islamic banking products.
Commenting on the findings, Bin Ghalaita said: "With three out of four people in the UAE willing to consider an Islamic banking product, there is clearly an opportunity for the industry as we continue on our path to become the global centre of the Islamic economy.
"With a firm focus on continued innovation, Emirates Islamic is committed to developing the best products and services that will meet the needs of our customers. In doing this, we will ensure we play a leading role in supporting individuals, entrepreneurs, corporates and SMEs that shape the future of the UAE’s Islamic economy."