First Published: 2009-11-05

 
Islamic banks weather economic storm
 

Banks that comply with Islamic Sharia law thriving due to 'conservative approach to risk'.

 

Middle East Online

'Solid track record'

LONDON - Banks that comply with Islamic Sharia law are thriving despite the global financial crisis, thanks largely to a "conservative approach to risk," according to a new listing published Thursday.

The latest research by The Banker magazine reveals that assets held by fully Sharia-compliant banks or the Islamic units of conventional banks rose by 28.6 percent to 822 billion dollars (550 billion euros) in 2009, up from 639 billion dollars (430 billion euros) in 2008.

This contrasts sharply with the stagnation in the conventional banking sector. The Banker's survey of the top 1,000 world banks published in July showed annual asset growth of just 6.8 percent.

"A conservative approach to risk and close links between the financial sector and real assets has helped shield the sector from the worst of the credit crisis," said the magazine's editor, Brian Caplen.

The Banker said the Islamic finance industry was building a "solid track record," with a compound annual growth rate for 2006-2009 of 27.86 percent, and forecast assets would hit 1,033 billion dollars in 2010.

The 2009 Top 500 Islamic Financial Institutions appears in November's edition of The Banker.

 

Egypt declares three-month state of emergency in Sinai

Lebanon army attacks Islamists as violence spreads to Tripoli souks

Russia denies Kerry claims: No agreement to train Iraq army

Punishment for sexual assault in Iran: Execution of victim!

European clubs step up campaign against winter World Cup in Qatar

Germany offers to help Armenia forge peace with Turkey

Libya wakes up from ‘Dubai dream’ to face Somalia-like ‘failed state’

South Yemen separatists vow to intensify secession protests

Relatives of Iraq massacre victims: Blackwater guards should be killed

Ghannouchi makes it clear to Tunisia: It’s either political Islam or Daesh!

Deadly clashes erupt after army raid in northern Lebanon

200 Iraqi Kurd fighters to travel through Turkey to Kobane

Coalition strikes in Syria eliminate more than 500 jihadists in one month

Ahead of elections, new clashes remind Tunisia of need to fight terror

Saudi Arabia jails mothers for preparing sons to wage jihad

Jury finds Blackwater guards guilty of 2007 'massacre' in Iraq

Iraq Kurds approve reinforcements for Kobane

Israel classifies car crash as ‘hit and run terror attack’

Turkish woman arrested for stepping on Koran

Erdogan criticises US for airdrops on Kobane

Iraq schools provide shelter but late to open for classes

Syria air force shoots down two of three 'IS warplanes'

Egypt court rules on ‘Nasr City terror cell’

Fire from Egypt wounds two Israeli soldiers near border

By hook or by crook, settlers notch up property gains in East Jerusalem

Turkey envoy meets leader of parallel government in Libya

Israel arrests seven Palestinian fishermen off northern Gaza

Khamenei to Abadi: Iraq can beat 'Islamic State' without foreign troops

Saudi special court rules in cases of riots and terrorism

Libya army scores small victory in Benghazi

Only in Libya: Government calls for civil disobedience

Kasserine reaps bitter harvest from Tunisia revolution: Poverty and terrorism

Iraq Kurds set to vote on deployment of Peshmerga forces to Syria

Islamic State ‘share in US weapons’ embarrasses Pentagon

Alderton: Morocco unrivalled business gateway to sub-Saharan Africa

Protests over IS turn Istanbul University into war zone

Turkey eyes stricter punishment against lawbreakers at protests

For Sudan President: Promises are something and re-election is something else

Iran returns Abadi to ‘house of obedience’

From traditional military to counterinsurgency force: Syria army grows more capable

South Sudan rivals accept 'responsibility' for civil war

British drones in Iraq also used for Syria surveillance

Turkey launches new wave of wire-tapping arrests

Rise of Shiite militias challenges government authority in Iraq

Syria Kurds show impressive resistance to ‘Islamic State’ in Kobane