IslamicFinance.de

Although Islamic banking has been gaining worldwide popularity in recent years, it still faces considerable challenges in raising profitability. Last year, a record US$144 billion worth of new Sukuk, or Islamic bonds, were issued worldwide and experts believe 2013 is likely to be another record year of issuances. Besides wholesale banking, there are opportunities in Islamic wealth management, especially in centres like Singapore. According to Ernst & Young, the largest markets for Islamic banking in asset terms are Saudi Arabia, Malaysia, United Arab Emirates, Kuwait and Qatar. However, most Islamic banks have not been as profitable as their conventional banking counterparts. Experts said this could be because of a weak risk culture, lack of scalability and poorer asset quality.