The industry’s progress in the MENA countries has been especially marked in the first two months of this year.
Furthermore, while Egypt has seen speed bumps in its effort to launch Islamic bonds due to uncertainty over the country’s financial system, optimism remains that the Islamic financial industry has a major role to play in the recovery of the Arab Spring countries as a whole.
In Syria, Islamic banks have grabbed the spotlight as the banking industry braces for a tough year ahead amid continuing political bedlam. Privately-owned Islamic bank Chambank’s net profits soared by 533% in 2011; while Qatar International Islamic Bank-owned Syria International Islamic Bank reported a 12% rise in pre-tax profit. The strong showing last year may put the banks on a firmer footing for this year; as the banking industry expects to face declining deposits and rising bad debt.
With its positive performance, Syria could emerge as the next country in a long list suffering from political turmoil to tap into Islamic finance to restore itself to its former glory.
source: Islamic Finance News