Islamic banks performing well, says Moody’s

by Richard Kilner

Story link: Islamic banks performing well, says Moody’s

Moody’s has released a report which reveals that the last decade has seen Islamic banks operating within the Gulf Cooperation Council record strong growth.

In addition, the Islamic banking sector accounts for 15% of banking assets in the region.

The findings are based on 23 Islamic banks, which held a combined asset total of $125bn at the end of 2006.

The banks have begun to diversify as competition increases, which has led to enhanced services.

The ratings agency believes that Islamic banks are being assisted by the increase in Sharia-compliant features, such as Sharia mortgages.

Over the course of the last decade Islamic banking has become a part of the mainstream banking within the GCC, according to the report.