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The total profits of Islamic banks in the Gulf countries exceeded $12 billion in 2014 for the first time ever, states the economic report by Ernst & Young.

The Ernst & Young presented the analytical study entitled as «World Islamic Banking Competitiveness Report 2015-16» in a conference in Bahrain’s capital Manama.

The key findings can be crucial for the future of the Islamic banks. Technological innovations and digital transformation will play an important role in building relationships with customers by assisting banks to meet the customer requirements.

According to the report, nine major markets are currently engines of growth for the global Islamic financial industry. Forty systemically important banks from these markets are presented in the report. The capitalization of more than 50% of these financial institutions exceeds 1 billion US dollars.

The Gulf Islamic banking sector growth, particularly in Saudi Arabia can be related to the increased budget expenditures from the oil income. It is revealed at the same time, that governments intend to withdraw resources from the banking sector in order to reduce the budget deficit caused by the fall of the global oil prices.

It is also stated in the report that the Islamic banking sector in the UAE gained momentum due to the growing development and innovation achieved in the digital world. This is what puts it on par with Malaysia in terms of global market share.

The full version of the report is planned to be presented on December 2015.