Growth Anticipated in Market Share of Europe, the Middle East and Africa Islamic Banks with a Neutral Outlook for 2023: Fitch 

A neutral 2023 sector outlook has been assigned for Europe, the Middle East and Africa (EMEA) Islamic banks by Fitch Ratings (Fitch) as profitability is expected to increase and liquidity to remain strong, while capital buffers are anticipated to remain adequate for the risks and asset quality is to remain stable. Additionally, credit growth will keep outpacing that of conventional banks.

Why it Matters?

The outlook reflects healthy economic circumstances in the major Islamic markets in EMEA, according to Fitch. Islamic banks in the EMEA region have a generally low market share of sector assets, with the exception of Gulf countries. Increase in market shares is anticipated to continue as awareness of and trust in the Islamic finance sector rise. As ban...