Everyone in UAE is aware of Islamic Banking, which works on the basis of Sharia-compliant. Islamic banking is well known for providing a business loan, where the customer need not pay any interest on the loan received instead pay some profits gained on the business. Several banks in the UAE provides Islamic Finance. This basically deals with the profits gained on the loans provided. According to a report, there were very few cases of Islamic banks experiencing loss. There are currently 20+ banks in the UAE which are providing Islamic finance services.
Top banks in UAE providing Islamic banking services
Dubai Islamic Bank
Dubai Islamic bank provides the best Islamic services. It is the first Islamic bank to open a ladies only branch with exclusive facilities for ladies under Johara Ladies.
Abu Dhabi Islamic Bank
Abu Dhabi Islamic bank provides vast services in UAE with several branches all around. It is known for providing best cards and services to the “New to UAE” employees.
RAKBank provides commercial banking services along with the Islamic banking services in the UAE. It provides exclusive cards, accounts, and other financial services for the Islamic banking users.
Standard Chartered Bank
Standard Chartered Bank is an international bank providing its service in UAE. Not only commercial banking services, it also provides best Islamic banking facilities.
Emirates Islamic Bank
Emirates Islamic bank provides commercial and retail banking facilities along with the Islamic banking services.
Islamic Fixed Deposits
Islamic banking provides fixed deposits also, Unlike conventional banking, the depositor will not get a standard profit on the investment made, the profit rates depends on the profits earned by the bank. So the profit rates are not constant, it keeps fluctuating. About 60% of UAE’s economy depends on the Islamic finance industry.
Latest updates on Islamic banking sector
According to the official reports by S&P Global Ratings, it is stated that by the end of 2016 Islamic finance was left with the assets of $2 trillion. Due to the decrease in the oil prices in 2017, there was a drop in the profits of Islamic finance. The authorities suggested that Islamic banks didn’t experience a huge loss. 2016 was the year with highest profits to date.
Experts suggest that the Islamic banking sector won’t experience any loss in far future because there are several other large-scale companies that are the clients of the Islamic banking industry. And those companies are likely to show good returns which will be helpful for the Islamic finance industry even though their contribution to the industry is less.
Since the initial days, Islamic banking sector never experienced any bad loss and is always performing great. Financial advisors suggest that there would be a growth in the assets of the Islamic finance industry after early 2018. Currently, the banks providing Islamic finance have reduced their lending business and are being selective about the customers it is providing money to.