Revenues from eight Islamic banks and Islamic windows belonging to commercial banks increased by 22.1% in the first half of 2019 to reach AED 14.676 billion, compared to AED 12.021 billion in the first half of 2018, according to a survey conducted by Emirates Today. Two banking analysts said that the performance of the banking sector in the UAE is proving consistently superior, amid cautious management by the leaders of banks, attributing the growth of revenues of Islamic windows of traditional banks to the customer base, banking and marketing expertise owned by these banks, and the development of products, as well as the establishment of the Supreme Legitimacy, which contributed to increasing the confidence of customers in the Islamic windows of traditional banks.

Islamic banks

In detail, a monitoring conducted by Emirates Today showed that Islamic banks' revenues increased by 9% to 27% during the first half of 2019.

Ajman Bank was the largest Islamic bank with revenue growth of 27.7% to AED 630 million, while Dubai Islamic Bank recorded the largest revenue of AED 6.982 billion with a growth of 25%.

Emirates Islamic Bank's revenue increased by 17.4% to AED 1.232 billion, while Sharjah Islamic Bank's revenue increased by 16% to AED 944.9 million. Abu Dhabi Islamic Bank recorded a 9% increase in revenue to AED 3.3 billion.

Islamic Windows

The monitoring showed a significant growth in the revenues of Islamic windows of conventional banks, as the revenues of Islamic transactions in Abu Dhabi Commercial Bank grew by 54.9% to reach AED 967.85 million, while the revenues of Mashreq Bank from Islamic transactions increased by 53.7% to reach AED 375.747 million. RAKBANK's revenue increased by 26.86% to AED 237.722 million.

Superior performance

In turn, banking expert Awatif Al Harmoodi said that the performance of the banking sector in the UAE is proving consistently superior, amid cautious management by bank leaders.

She pointed out that there are many factors that have maintained the strength of the banking sector in the country, most notably the flow of capital to the state, the decline in the US interest rate, and linking the local currency to the dollar, as well as the strict supervision of Islamic banking transactions by the supreme authority of the Central Bank.

She pointed out that the establishment of the Supreme Sharia Board, contributed to increase the confidence of dealers in the Islamic windows of traditional banks.

Customer base

In the same context, the banking expert Amjad Nasr, attributed the growth of revenues of Islamic windows by more than the rate of growth of Islamic banks, to the strong customer base of conventional banks that have Islamic windows, as well as the banking and marketing expertise owned by these banks, and the development of products, which helped them to grow Its revenues from Islamic transactions.

He explained that the market share of Islamic banks is increasing steadily, given the demand for Islamic banking products, especially sukuk. He predicted that Islamic banks will continue to achieve growth rates in the coming periods, provided that they continue to innovate and develop products and expand the use of financial technology.

The performance of the banking sector in the UAE is proving consistently superior.

Future growth is contingent on continued innovation.