Islamic assets in commercial banks will exceed US $ 778 billion in 2014 and global profits of Islamic banks are set to triple by 2019. The information is from the World Islamic Banking Competitiveness Report 2014-15 published by Ernst & Young (EY).
According to the document, about 95% of international Islamic assets in commercial banks are based in nine major markets, five of which are part of the Gulf Cooperation Council (GCC). Islamic banks in Saudi Arabia, Kuwait and Bahrain represent more than 48.9%, 44.6% and 27.7% market share respectively. Positive progress has been has made in Indonesia, Turkey and Pakistan, with 43.5%, 18.7% and 22.0% compounded annual growth rate (CAGR) respectively from 2009-2013. Iran was excluded from the report.
Global Islamic banking assets witnessed a CAGR of around 17% from 2009 to 2013. Islamic banking assets in six core markets Qatar, Indonesia, Saudi Arabia, Malaysia, UAE, Turkey on course to touch US$1.8t by 2019.
Islamic banks have some own rules, following determinations of sharia, Islamic law. These standards differ from traditional banks, for example, prohibiting the charging of interest and speculation of capital.