Islamic Banking

Islamic Banking Products Are Becoming More Popular In The UAE

Emirates Islamic

Islamic banking products are gaining in popularity in the UAE – particularly among non-Muslims – according to Emirates Islamic’s 2017 Islamic Banking Index.

This index was launched in 2015, and it tracks consumer sentiment towards Islamic banking products in the UAE. And, according to this year’s report, there’s been a 7% increase in the adoption of Islamic banking products among non-Muslims.

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Overall, that now means that over half (52%) of UAE consumers currently subscribe to an Islamic banking product. That’s a five-point increase on when the first index was published in 2015.

What’s more, the index found that, on the whole, Islamic banks are perceived to be trustworthy, more community minded and more financially sound than conventional banks. And 29% of non-Muslim customers said they believe that Islamic banks offer better profit rates on savings and deposit accounts.

Research conducted by yallacompare earlier this year found that, during the first half of 2017, Islamic banking products were overall less popular than in last year. We found that 10.47% fewer people applied for Islamic banking products in the first half of 2017 than in the first half of 2016.

Still, Emirates Islamic’s index found that, at the very least, awareness of Islamic banking products is on the up. Over 65% of UAE consumers are familiar with at least one Islamic banking product, the report said.

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