Dubai launches Center for Islamic Banking and Finance
Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of Dubai Executive Council and President of the Hamdan Bin Mohammed e-University (HBMeU), has launched the Dubai Center for Islamic Banking and Finance as a new step in support of the efforts towards establishing Dubai as the world’s capital for Islamic economy.
The centre is a collaboration between the Hamdan Bin Mohammed e-University and the emirate’s initiative: ‘Dubai: Capital of Islamic Economy’.
“The launch of the Dubai Center For Islamic Banking and Finance is a significant boost to the Islamic economy sector in the UAE, and a major step forward in the economic development agenda of Dubai, in line with the vision of Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, for transforming Dubai into the capital of Islamic economy,” said Sheikh Hamdan.
The announcement made on WAM news agency follows the unveiling of a plan in January by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, for the emirate to become the “global capital” of the Islamic economy.
According to Sheikh Hamdan, the new centre is expected to help cooperation between different sectors in the UAE based on investing in the best international expertise and experiences of Islamic economy, in order to benefit this sector, in general, and to consolidate the global economic stature of Dubai, in particular.
The new centre will provide support to the initiative through three academic programs on human resources development, scientific research and community service.
In the area of Human Capital Development, the Centre offers programs and courses to all learners along the Center’s lifelong learning model based on Masters programme in Banking and Finance which is accredited by the UAE Ministry of Higher Education and Scientific Research.
On the research front, The Centre conducts and facilitates research to advance the professional and theoretical foundation for Islamic Banking and Finance.
The Center will also play a vital role in widening access to Islamic banking and finance education to the wider community. The Center offers several major services including short term courses in both English and Arabic provided on a special track within HBMeU Cloud Campus, seminars and webinars for professionals, businesses, and educational institutions, as well as consulting on Islamic.
Islamic Banking and Finance – Market and Potential
Islamic finance is a financial system that operates according to Islamic law (called sharia) and is, therefore, sharia-compliant.
According to a report by KFH Research, Islamic banking will continue to grow in the GCC region during 2013, as it enters new markets worldwide, driven by growth factors and increasing demand. Islamic banking assets are expected to reach USD 1.5 trillion by end of this year with an accumulative growth rate of up to 20%.
Islamic banking represents the largest market share (80.3%) in the Islamic finance total assets. According to KFH Research, Iran’s Islamic banking assets contributed 42.7% of the total global Islamic banking assets in 2012, followed by GCC (34.1%) and Malaysia (10.0%).
Although Islamic banking industry currently constitutes a meagre 1% of the global banking assets, Islamic banking is the fastest growing segment in the international financial system.