The growth of the Islamic finance industry has been one of the most notable features of the economic success story in the GCC over the past 20 years. The World Bank estimates that there are around USD 2 trillion worth of financial assets that are compliant with Shariah, including assets from the banking, capital markets, and insurance industries. Islamic finance has developed over time, going from providing a small number of services to becoming a fully integrated system. Emerging markets have been at the vanguard of this expansion, particularly countries with Muslim majorities. The modernization of Islamic finance has also been significantly influenced by technological breakthroughs.
Islamic financial institutions are offering their services through digital channels, making it more convenient for their clients. Although some traditional consumers still favour brick-and-mortar banking, the digital revolution is still reshaping the sector. Customers now have simple access to their accounts through online and mobile banking, which also enables smooth transactions. Additionally, payment systems have developed to meet the needs of tech-savvy customers, guaranteeing accessibility and convenience. Islamic financial institutions have also become interested in the emergence of digital currencies and the blockchain technology that underpins them. These organisations are investigating how they might benefit from these improvements and adapt to the shifting environment.
Vanguards of Innovation in the UAE’s Financial Services Landscape
Enhanced accessibility is crucial for the continued growth of Islamic finance, especially in developing markets. By embracing technological developments, Islamic finance can overcome barriers and reach a wider customer base. Mobile banking and online services have the potential to connect with individuals who may not have easy access to physical banking infrastructure. Furthermore, industry titan, Aafaq Islamic Finance is playing a crucial role in exploring opportunities across sectors, empowering businesses, and ensuring the highest levels of satisfaction for all stakeholders, including shareholders, customers, employees, strategic partners and the community.
Aafaq has developed a wide range of corporate finance packages that offer amazing value and significant flexibility in order to assist businesses of all shapes and sizes. In addition to these products, Aafaq has also introduced innovative services such as Labour Guarantees, Wages Protection System, Smart Payment Tools and Top-up services. The company takes pride in having strong and decisive partnerships with various reputed institutions and government organisations in the UAE.
Aafaq’s partnership with Rasmala showcases its sustainable and innovative investment growth in the UAE market. With the aim of enhancing the standards of service provided to the citizens of the Emirate of Dubai, Aafaq Islamic Finance inked an agreement with the Mohammed Bin Rashid Housing Establishment. Recognising this revolutionary feat, International Business Magazine awarded Aafaq the honourable title of Most Innovative Islamic Financial Services Provider UAE 2023. This recognition supports Aafaq Islamic Finance’s goal to create cutting-edge products and establish itself as the preferred source of digital Islamic financing in the UAE.
Unlocking the Future
Technology improvements have a big impact on how Islamic banking develops as it continues to expand and gain popularity. Islamic financial institutions may provide a wide range of services, increase accessibility, and meet the needs of their target customers thanks to the integration of technology. The Islamic finance sector has the potential to dominate the global financial landscape by embracing innovation and working with fintech.
Blog by Tamanna Shaikh
