Standard Chartered Private Bank continues to roll out Islamic financial services to clients across its range of booking centres and expects robust growth in this sector.

Standard Chartered Private Bank, which has recently rolled out Islamic financial services to clients, expects such banking to expand by up to 25 per cent over the next two or three years from its current relatively low base, according to media reports.

The comments, made by Stephen Richards Evans, head of private banking for Europe, Middle
East, Africa, South Asia and the Americas, were given as the bank continued its launch programme for Islamic banking in different financial centres, this time featuring in Dubai. The services will be available also in London, Geneva and Jersey. The services and products include fiduciary deposits, property financing, equities, Islamic fixed income instruments, mutual funds (including exchange-traded funds), third-party structured products and discretionary services.

The move by the private bank, part of London-listed Standard Chartered, comes at a time of continued expansion in the Islamic banking model; assets of such banks are expected to reach $1.1 trillion globally in 2012, up 33 per cent from 2010, StanChart says.

“We have identified a latent demand among our existing and prospective private banking clients for Islamic private banking solutions. With our deep understanding of the region, strong international footprint across the world’s most dynamic markets and a wide experience in Islamic banking, we are well-placed to meet this need,” said Khalid El Gibaly, regional head of consumer banking, UAE and Middle East, Standard Chartered Bank.

The services will be delivered in collaboration with Standard Chartered Saadiq, the firm’s Islamic banking arm.

Large market

“In the GCC alone, there are more than 500,000 high net worth individuals with net investible assets of over 1.7 trillion and this number is rapidly growing in light of relatively better economic conditions in the region compared to other parts of the world. However, this segment remains one of the most underdeveloped and underserved amongst all the Islamic banking client segments,” Stephen Richards Evans, regional head of private banking, Europe, Middle East, Africa and Americas, Standard Chartered, is reported to have said.

Standard Chartered has an independent Shariah supervisory committee comprising of Dr Abdul Sattar Abu Ghuddah, Sheikh Nizam Yaqubi and Dr Mohammad Ali Elgari. The committee guides bank products and certifies that they follow Shariah rules.