22.5 C
Dubai
Thursday, November 30, 2023
spot_img

Rising Oil Prices to Boost GCC Islamic Banks’ Assets

Rising oil prices and ambitious diversification efforts in the GCC nations are expected to sustain robust business activity among Islamic banks in the coming 12-18 months. Moody’s analysts predict that these banks will outperform their conventional counterparts in terms of profitability, driven by favorable margins.

The region’s economic growth, supported by high oil prices, diversification initiatives, and business confidence, will maintain stable asset quality. Strong capital and liquidity positions will enable GCC Islamic banks to meet the growing demand for Islamic financial services.

The global Islamic finance industry is poised to surpass $3.0 trillion, with the GCC playing a significant role. Saudi Arabia will lead in market penetration, and the focus on retail financing will support asset quality.

Moderate inflation levels in the region will help mitigate asset risks. Moody’s expects GCC Islamic banks to maintain a net profit margin advantage over conventional banks, with solid returns on assets and ample capital and liquidity to facilitate growth.

These banks have resilient capital positions, well above regulatory requirements, and robust loss reserves.

Next Article

Related Articles

Emirates Issues Alert as Peak Travel Approaches in Two Days for Dubai Flights

Alert Dubai's leading airline, Emirates, has issued a warning to passengers about an anticipated surge at the airport set to commence in two days. Festive...

DWTC Vice-Chairman Inaugurates India’s Largest Apparel Show

Vice-Chairman The inaugural Brands of India trade show, organized by The Clothing Manufacturers Association of India (CMAI), witnessed its opening by Butti Saeed Al...

Popular Route Gets a Boost: Leading Airline to Operate A380 Double-Decker on UAE Flights

 A380 Double-Decker Etihad Airways, the UAE's national carrier, has announced its decision to deploy the A380 double-decker aircraft on the New York JFK route,...

“Walmart Turns to India for Cost-Effective Imports, Moving Away from China”

Data from Import Yeti reveals a significant change in Walmart's import strategy, with a notable shift from China to India. Increased Imports from IndiaWalmart,...

Hatim AL Abri: On Predicting Efficient Products Distribution At the Customer Level

Hatim AL Abri, an adept professional and the Co-Founder of ZabonEx, brings incredible expertise to the table. With a commitment to contribute towards digital...

Latest Articles