UAE Consumer Uptake and Perception of Islamic Banking Rises for Third Year According to the 2017 ISLAMIC BANKING INDEX by EMIRATES ISLAMIC
UAE customer uptake and perception of Islamic banking services and products has actually climbed for the 3rd consecutive year, inning accordance with the 2017 ISLAMIC BANKING INDEX by EMIRATES ISLAMICTM.
The results of the 2017 survey reveal that over half (52%) the populace of the UAE currently have an Islamic banking item, an increase of five percentage points on the inaugural 2015 survey. Considerably, there has actually been a 7 points rise in the adoption of Islamic products by non-Muslim bank customers, showing Islamic banking's wide appeal and value proposition.
The research has actually likewise revealed a constant increase in the typical UAE customer perception of Islamic banking product or services, likewise rising by five points from 2015. The study exposed a distinctive closing of the gap in exactly how Islamic Financial institutions are viewed in relation to traditional banks - particularly when it happens highly innovative and innovative, and offering superior customer care.
Commenting on the results of the 2017 Index, Jamal Bin Ghalaita, CEO of Emirates Islamic, said: "The results of this year's Islamic Banking Index clearly reveal that even more people in the UAE are identifying the positive qualities of Islamic banking, bring about a broader adoption of Shari'a- compliant services and products. This is a welcome pattern that bodes well for the future of the Islamic banking market and supports the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai making Dubai the global resources of Islamic economic situation."
Launched in 2015, The ISLAMIC BANKING INDEX by EMIRATES ISLAMIC is a first-of-its-kind consumer study that determines the progression of the Islamic banking market in the UAE by tracking customer behavior and view towards Shari'a- compliant banking products and services. The Index benchmarks against 4 indications: 'infiltration - customers who have an Islamic banking product; perception - the average ranking of Islamic count on a variety of attributes; knowledge - consumers' understanding of Islamic banking terms; and intention - exactly how most likely consumers are to subscribe to an Islamic banking item.
Key findings of the 2017 ISLAMIC BANKING INDEX by EMIRATES ISLAMIC include:
PENETRATION
More than half of UAE consumers - 52% - have at least one Islamic banking product - 5 portion factors greater considering that the first survey in 2015
Non-Muslims are progressively making use of Sharia-compliant cards with a rise of 7 factors from 2015
PERCEPTION
The assumption of Islamic banks versus traditional banks has started to shift, with Islamic financial institutions closing the gap on conventional banks on key areas consisting of innovation, rate of service and simplicity of making use of treatments
Islamic banks are consistently (over three years) viewed to be extra credible, extra community minded and more financially audio compared to conventional financial institutions
29% of non-Muslim consumers think Islamic financial institutions use the very best profit prices on down payments, while 24% believe that to be real of conventional financial institutions
KNOWLEDGE
Knowledge of Islamic banking remains to expand with 65% of consumers familiar with a minimum of one Islamic banking product - a rise of 6 factors on 2015
Knowledge of Shari'a- compliant products is enhancing much faster amongst non-Muslims - up 13 percentage points on 2015
INTENTION
Customers are equally as most likely to request an Islamic financing item in the next six months as they are a standard product with general purpose for both categories
Wasim Saifi, Deputy CEO-Consumer Banking and Wealth Management at Emirates Islamic concluded: "This year's Islamic banking Index has actually highlighted the possibility for ongoing growth and boosted share of the marketplace for Islamic banking in the UAE. This is particularly motivating when looking at the increase in uptake of Islamic banking services and products by non-Muslim customers. There is also untapped potential when it concerns Muslim customers who have actually typically perceived conventional financial institutions to be a lot more innovative and technically advanced. The gap is shutting right here as well. Digital innovation is an area that Emirates Islamic will certainly continue to concentrate on, in order to offer best-in-class banking product or services and a really exceptional customer experience. Moving on, we will continue to play our introducing function in the Islamic banking sector, helping additional boost the adoption of Islamic banking products in the UAE."
