Islamic Banking Set to Outpace Conventional Growth in GCC

Islamic finance is projected to surpass conventional banking growth in the Gulf Cooperation Council (GCC) region, driven by robust economic expansion and increasing demand for Shariah-compliant products, Middle East Monitor reported yesterday citing Moody’s Ratings.

Saudi Arabia leads with 85% market penetration in Islamic banking, while other GCC nations like the UAE, Oman, Kuwait, and Qatar also show significant growth potential.

Moody’s forecasts strong profitability for Islamic banks over the next 12 to 18 months, aided by government diversification efforts.