Bahrain’s Already Large Islamic Banking Sector Has Further Potential for Growth: Fitch Ratings  

Islamic banks (inclusive of Islamic windows) should gain market share in Bahrain in 2021-2022, after attaining a 37.1% share of domestic banking system assets and 17.2% of total banking system assets (including foreign assets) by end-2020, predicts Fitch Ratings. Bank mergers and acquisitions, continual Islamic financing development in a rebounding economy, expanding public knowledge of Islamic products and rising usage of fintech solutions are all expected to contribute to the ascent.

Why it Matters?

The Islamic banking sector has several factors moving in its favour including its mainstream relevance and strong awareness levels of Islamic products, as well as a large branch and digital banking network, government backing via an enabling regulatory e...