|A recent Dubai Chamber of Commerce and Industry study calls for exporting Dubai's expertise in Islamic financial services to the untapped markets outside the GCC including Turkey, the Levant and South East Asia where the large Muslim population provides a good base for growth, especially in light of the sector's expected strong growth in the coming years.
The study points out that Dubai banks are potentially well positioned to harness organic growth in these markets where Islamic products can appeal to the predominantly Muslim indigenous population. However, to compete with conventional international institutions, Dubai's Islamic finance sector must scale and breach the critical mass required to make products feasible. For example, takaful contracts that imitate life-insurance rely on long-term Islamic bonds, which in turn rely on viable secondary markets and wide-scale adoption. (Press Release)