Islamic banking, termed participant banking, is outgrowing conventional banking in many of the world’s predominantly Islamic countries. Today the total participant banking market is worth around $920 billion, which is projected to grow more than $1.6 trillion ( the total outlay of Pakistan budget 2016-17 is 4.9 trillion) by 2020, research by EY shows. Particularly the Gulf States are seeing rapid participant banking growth. Return on Equity within the sector remains relatively robust at 12.6%
In a recent EY study, titled ‘World Islamic Banking Competitiveness Report 2016’, the professional services firm explores the Islamic Banking landscape. The report is built up from analysis of 69 participation banks (Islamic Banks) and 45 conventional banks, covering the markets of Bahrain, Qatar, Indonesia, Saudi Arabia, Malaysia, United Arab Emirates, Turkey, Kuwait and Pakistan
The Islamic banking industry in Pakistan starting from scratch in 2001-02 has grown manifolds and in 2013 have achieved 10% share ( achieving a target of 15% share in overall banking industry along with doubling of number of branches in the next 5 years has been envisaged in the plan as an attainable target for the industry) of total banking industry despite tough economic conditions . The fast pace growth of Islamic banking in the country during the last decade is an indicator of a huge latent demand for Islamic Banking products and services. Although the growth is impressive, there are still areas which require concerted, proactive and prudent initiatives by stakeholders to further develop and nurture the industry.
Source: STRATEGIC PLAN – ISLAMIC BANKING INDUSTRY OF PAKISTAN 2014-18
- Meezan Bank Limited.
- Dubai Islamic Bank.
- Al-Baraka Bank*formerly Burj Bank Limited.
- Bank Alfalah Islamic.
- BankIslami Pakistan Limited.
- Standard Chartered Bank.
- Askari Bank Ltd.
- MCB Islamic Baking