Islamic banking gets increased public acceptance in UAE

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Dubai—There has been an increasing public acceptance, awareness and demand for Islamic banking in the UAE, according to the findings of Emirates Islamic’s second Islamic Banking Index. “This year’s survey brings much good news to the industry, providing clear evidence that the strength and scope of Islamic Banking in the UAE is on the rise. 51% of banking consumers have at least one Islamic product, demonstrating that the efforts by Islamic banks to improve their customer outreach are paying off,” Jamal Bin Ghalaita, chief executive officer of Emirates Islamic said in a statement.
The index provides an annual benchmark of shifts in the ‘penetration’, ‘perception’, ‘knowledge’ and ‘intention’ of UAE consumers when it comes to Shariah compliant banking, The survey found out that 51 per cent of the UAE banking consumers have at least one Islamic banking product, marking a 4 percentage points increase over last year’s score. While 36 per cent of the banking consumers have an Islamic product from an Islamic bank, up from 34 per cent in 2015.
About 62 per cent of banking consumers in the emirates are aware of at least one Sharia-compliant banking product, a rise on the previous year’s findings. The study also revealed that for a second year, the best-known products remain Takaful and Murabahah, with 40 per cent and 31 per cent of respondents familiar with their use.—Agencies