IBS Journal May 2015


Islamic Banking Sales League Table


While new-name core banking system sales saw a slight increase in 2014, as revealed by the IBS Sales League Table, analysis of the small sub-set of the market for Islamic solutions showed a steep decline compared with previous years. What was going on out there in the Shari’ah-compliant banking sector?


While the overall market for core banking systems showed modest growth in 2014, the market specifically for Islamic bank- ing systems headed notably in the other direction. Only 14 of the 2014 tally of 237 selections were Islamic. This is in stark con- trast to 35 Islamic deals out of 223 total deals in 2013. Indeed, the 2014 tally was the lowest by a considerable margin in all the time we’ve been recording these wins. What was going wrong out there? It doesn’t need close attention to


world affairs to spot the level of turmoil in some of the countries that had previ- ously generated much of the growth in Shari’ah-compliant banking. Iraq, Syria, Yemen, Sudan and Libya made headlines


for all the wrong reasons in 2014, particu- larly linked to the rise in Islamic funda- mentalism. The development of Islamic banking in these countries came to a jud- dering halt. Meanwhile, where in previous years


there had been country-specific spikes in activity due to regulatory changes, this did not occur in 2014. In the past, in Oman, for instance, the central bank announced in 2011 its decision to license Islamic bank- ing services to try to diversify and widen banking services. A Royal Decree amend- ing the banking law and the legal author- isation for Islamic banking was issued in December 2012 and saw a flurry of sys- tem selections by existing and new banks.


‘We are seeing more new markets coming up


but they are doing so very slowly.’ Mohammed Kateeb, Path Solutions


30


© IBS Intelligence 2015


www.ibsintelligence.com


ibs sales league table


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