Islamic banking, which accounts for 17% of the Gulf Cooperation Council banking assets, is expected to grow annually at 15%-20%, according to Kuwait Finance House.

Over the years, Islamic banking in the Gulf Cooperation Council region has witnessed remarkable growth and seen tremendous demand for its products and services, the report said. The share of Islamic banking sector continues to increase, accounting for around 16.6% of the total assets of the region’s banking system as of end-March 2010.

Kuwait’s Islamic banking sector accounted for 34.3% of the country’s total banking assets, followed by Qatar (19.3%), Saudi Arabia (15.9%), the UAE (14.0%), and Bahrain (10.9%).

The Gulf region’s high GDP per capita at $27,937, coupled with its young population (30% of the population falls under 15 years and 66.7% of the population between 15-64 years), will help support consumer spending and investment which would in turn increase the demand for Islamic financial products and services moving forward, the report said.

Kinos Group has signed several agreements with important partners within the Gulf Cooperation Council and is collaborating in the project entitled “The Market Development Plan. Planning 2009-2011. The Gulf Countries”. The document is issued by the Ministry of Industry, Commerce and Tourism in collaboration with The Spanish Confederation of Business Organizations. It comprises strategies and actions necessary for the promotion of economic relations between Spain and the Gulf Countries (Bahrain, Saudi Arabia, Oman, Kuwait, Qatar and the United Arab Emirates).

news source: gulf-times.com