Improving the SMEs Access to Trade Finance DRAFT
in the OIC Member States
62
successful pursuit of commercial activity in international markets, and the contribution to such
success, that can be made by effective and affordable trade financing, particularly when it
extends into the SME segment of business.
Additionally, a recent announcement indicating that Dubai seeks to become a hub of Islamic
Finance reinforces the integrated and strategic approach taken by the Emirate in its view of
the potential for and complementarity of Islamic and conventional finance models.
“Transforming Dubai into a global center for Islamic sukuks is intended to cement
confidence in our economy among international financial circles,” [Sheikh Mohammed
bin Rashid al-Maktoum] carried on to say. Sheikh Mohammed stressed the importance
of activating the role of Islamic economy in the UAE’s national economy. “Today, Dubai
possesses all the potential and privileges that qualify it to achieve its goal of becoming a
global center for Islamic sukuks. We will work on completing the necessary
organizational framework and mobilize efforts and energies, national cadres and
experts to give this sector the anticipated momentum.” The new initiative will
encourage organizations to issue sukuks instead of bonds and builds on Sheikh
Mohammed’s January declaration to create an Islamic finance council to regulate
Shariah-compliant equity — and his desire to integrate Islamic economy as part of the
overall Dubai economy.
Source: Al Arabiya, 2013
According to the Ernst & Young Islamic Banking Competitiveness Report, 2013, Islamic
Banking assets reached about US $1.3 trillion in 2011, and exhibited growth rates averaging
19% annually over the past four years. The top four markets globally account for 84% of
Islamic Banking assets, with markets like Saudi Arabia, Malaysia, Qatar, Turkey and Indonesia
deemed to present high potential as centres of Islamic Finance.
Figure 22: Banking Asset Penetration
Source: Islamic Banking Competitiveness Report Ernst & Young, 2013