Rated Gulf Islamic Banks And Takaful Companies Resilient In Global Market Dislocation But Facing Risks

ZAWYA:Gulf Islamic financial institutions and takaful companies are feeling the repercussions of the current global financial market disruption less than most of their conventional counterparts because Sharia law prohibits interest-based financial products, according to a new report by Standard & Poor's Ratings Services...Read More

Profits higher for Islamic banks in GCC

Khaleej Times :Profitability was generally higher for Islamic banks, especially in the GCC last year, while conventional banks with an Islamic window started to emerge as significant players, according to a report released on Sunday.

While reviewing a competitiveness report by McKinsey & Company as part of the opening ceremony of the 15th Annual World Islamic Banking Conference (WIBC), experts agreed that sound liquidity and risk management should be made an immediate priority to Islamic banks to expand its immunity against financial crisis.

Building on the phenomenal growth of WIBC and the Islamic banking industry in general, the eagerly anticipated 2008/09 WIBC McKinsey Competitiveness Report this year again examines the growth and profitability trends in the Islamic banking sector and the leading players i.e. the winners and the losers.

Complementing last year's analysis of the performance of Islamic banks, this groundbreaking original research project poses critical questions on the size and attractiveness of the market and the key success factors in capturing the potential of Islamic banking.

The report urges unconventional banking organisations to increase focus on operational excellence and profitability as well as rethink the core position of the industry and its contribution to the global financial ecosystem.