The UAE is expected to have record sharia-compliant assets worth $263 billion by 2019. A report by audit firm EY said in 2014, sharia complaint assets in the UAE crossed $1 billion while the industry itself was estimated to be worth $127 billion. The UAE was the third largest Islamic banking market by value after Saudi Arabia and Malaysia, the report added. Islamic banking penetration in the emirates stood at 21.4% last year, representing a 14.6% share of the global market. The EY report said Islamic banks in the UAE, also known as participation banks, are eyeing revenue growth through experience-led transformation of their domestic business. Stronger capital position is also driving their international expansion. Initiatives in mobile payments are likely to cause positive disruption to banks’ traditional operating models, it added.
