RIYADH (Internews): In the backdrop of Gulf Cooperation Council countries’ economic diversification efforts, Islamic banks are poised to outperform their conventional counterparts in profit margins, as per a recent report by Moody’s Investors Service.
Fueled by stable oil prices and steadfast economic agendas, the GCC anticipates increased business activities within Islamic financial institutions over the next 12 to 18 months.
In its latest report, the global credit rating agency forecast that the profitability margins of these Shariah-compliant banks will surpass those of traditional banks in 2024, largely attributed to their inherent margin advantage.
As the regional economy expands, the asset quality of GCC Islamic banks is expected to remain robust.
Additionally, their strong capital and liquidity positions will better equip them to meet the growing regional demand for Islamic banking services, as outlined in the report. —INTERNEWS