Worldwide Finance: Final year, Ahli United Bank [AUB] done its conversion to an all-Islamic financial institution. Why did you opt for to fall conventional banking?
Ahmed Alkharji: AUB transformed its banking license and organization product to an all-Islamic bank adhering to the acquisition by Kuwait Finance Home [KFH], a leading Shariah-compliant banking team, in Oct 2022. Offered the increasing acceptance and need for Islamic banking, AUB’s conversion to an Islamic financial institution will open up numerous avenues of growth and contribute to the even more development of Islamic banking in Bahrain as properly as in the broader area.
In Egypt, for case in point, where AUB has a very long-lasting existence, getting a Shariah-compliant loan company lets us to seek substantial growth chances. As of now, Islamic banking only accounts for 5% of the Egyptian banking market. Additionally, in markets like Egypt and the United kingdom, AUB has been a reasonably lesser participant amid standard financial institutions but will be 1 of the greater gamers amongst Islamic banking institutions, thereby providing us with much better growth possibilities.
Overall, AUB’s conversion to Islamic banking is a substantial milestone in the bank’s advancement journey and is a testomony to its motivation to supplying a extensive variety of Shariah-compliant banking products and solutions and companies.
GF: What does that entail for consumers?
Alkharji: With the conversion, there have been variations. Merchandise and solutions available to shoppers have been converted to meet Shariah compliance demands. Our objective is to continue on furnishing remedies to our present customer base although focusing on new clients who are drawn to our impressive Islamic banking and financial commitment choices, each in our present geographical access and outside of.
In the current yrs, Islamic banking has been through a exceptional evolution. Many thanks notably to innovation, we now supply items and expert services which contend with individuals of common banks at a regional and worldwide amount. This has spurred an amplified desire from a broader pool of retail, corporate, non-public and prosperity management shoppers, regardless of whether they are Shariah-delicate or not.
GF: Post-merger, you are now the 2nd most significant Shariah-compliant loan company by belongings globally. What markets you are fascinated in?
Alkharji: For us, the immediate precedence is to transform our regular banking subsidiaries in Egypt, the United Kingdom and Iraq to Islamic financial institutions. In these jurisdictions, there is a considerable probable for Islamic banking progress, and we hope to leverage it.
GF: What solutions and expert services will you focus on?
Alkharji: We think that our buyers search for advantage and simplicity. If we can deliver that in addition to getting Shariah-compliant, we will triumph in our mission. AUB Group at this time gives detailed and improved Islamic banking goods in sectors such as company, retail, private investments, trade finance and economic markets. We will try to assure that the monetary desires of all our concentrate on clients are fulfilled via solutions that are Shariah-compliant, be it for preserving, investing, borrowing or transactional needs.
We are also really concentrated on introducing a broader array of ground breaking provides and electronic answers encompassing banking, financing, intercontinental trade, multiasset investments and personal banking as effectively as wealth administration solutions. Our purpose in this article is to frequently cater to our clients’ evolving demands and, at the similar time, to improve their banking working experience.
GF: How do you see the future of Islamic finance?
Alkharji: The potential of Islamic finance is promising. We believe it holds significant probable for expansion and worldwide recognition beyond conventional Islamic marketplaces as demand for moral and responsible monetary tactics go on to evolve, coupled with growing endeavours for cross-border collaboration, standardization and innovation.
The Islamic finance sector has witnessed robust progress, supported by enhanced banking belongings and a fast-acquiring sukuk business. As for every ranking agency Normal & Poor’s, world wide Islamic finance property recorded 12.2% advancement in 2021 and 9.4% in 2022, which served it to cross the $3 trillion mark in 2022. In 2023-2024, S&P expects the sector to sign-up a further 10% asset enhance.
The development of Shariah-compliant finance carries on to be driven by aspects these kinds of as larger standardization, new solution improvement, greater sukuk issuance, a aim on sustainability-connected themes by core Islamic finance players, the advancement of fintech platforms and applications, shariah-compliant prosperity administration solutions and the digitalization of financial companies.
The post Islamic Banking’s Evolution: Q&A With Ahli United Financial institution Team CEO Ahmed Alkharji appeared to start with on World Finance Journal.