Islamic banking increasingly popular with the UAE

December 1, 2014

picAs the rise of commodities and extravagance in the UAE intensifies, the financial sector are focusing on gaining a reputable market share of the industry.

The strict rules that define the Islamic banking means now people can align their finances with their religious views. And this is just one of the features that has made Islamic banking increasing popular within Dubai and the wider UAE.

Consumer banking has become a top priority with the UAE, as each bank fights for their own market share. A lack of interest payments on loans, as all Islamic banks reject the prospect of what they call “Riba”, has also helped this bank with its popularity.

Banking development

The banking rules go by the strict laws put in place in the Koran. The rules and regulations for personal loans within the UAE are dictated almost entirely by Sharia’h law.

And the industry just keeps on growing. Over the past decade the Islamic banking business has grown from 6% of the banking sector in 2000 to around 22% in 2010. That’s a growth of nearly 400% in 10 years within one of the fastest developing and richest nations on earth.

Impressive, to say the least. And Islamic banking shows no sign of slowing down in popularity, in fact more and more people use this variety of bank every single day.

Islamic banking rules

The UAE leads the Middle East as a hub for financial services and development. Many local banks are reporting large growth, and expansion into other countries in order to develop their reach.

Islamic Banking is preferred borrowers because it is seen as a safe and transparent way to store your money; it is more ethical than other financial options, and is consistent with the teachings of Sharia’h.

The idea behind the Islamic banking Current Account is historically established. It is a well-known fact that throughout Islam, money is seen as an object for trade, and making profit from debt and interest is forbidden within the Quran.

As one of the more moral options on the financial market, it attracts customers from all religions throughout the world, but growth has been significantly targeted in countries such as Egypt, Morocco and Turkey – those that have a predominantly Muslim population.

Personal loan in UAE

It is important to the followers of Islam that they have a bank account in line with their religious beliefs; customers only want to be involved in risk-free sharing that can be unquestioned in the eyes of Sharia’h Law.

This is why it helps to consider a bank who can offer a tailored banking solution, such as Citibank, who have the experience and knowledge of Sharia’h Law to provide you with peace of mind in your banking.

Islamic banking will allow you to take a personal loan out within the UAE, but due to the laws of Islam there are strict rules as to what happens to your money once it is being controlled by the bank.

The steep rise of sharia-compliant lenders has been very apparent in countries like Dubai and Qatar, and these banks continue to diversify their offerings to lenders in order to attract a wide range of customers and improve interest from the retail segment.