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The Arab Spring uprising has stimulated demand for Islamic finance across North Africa, according to the 2012 Top Islamic Financial Institutions report from The Banker, a specialist Financial Times publication providing international banking news, comment and analysis.
Now in its 7th year, The Bankerâ€™s Top Islamic Financial Institutions report shows strong growth in the Islamic finance industry, with total assets increasing 18.5% from 2011-2012 to total $1,166 billion. In early 2012, Egypt, Tunisia and Morocco announced their intentions to start issuing sukuk (Islamic bonds) to get a slice of the growing global sukuk market â€“ valued at $84.4 billion in 2011.
The report reveals Egypt is among those countries with the strongest potentials for growth in Islamic finance, with its Islamic banking sector recording a return on assets (ROA) ratio of 1.29% in 2011 compared to 0.85% for conventional banking. The top-performing market was Iraq which achieved an impressive ROA of 3.85% for its Islamic banking sector, compared to 2.27% for its conventional.
With the global Muslim population today estimated at $1.6 billion â€“ equivalent to 22% of the worldâ€™s population â€“ the growth potential of the industry is indisputable.
For more insight, view the report here: