EXPERT OPINION
In fact, I think this is an important
difference that became quite apparent in
the financial crisis of 2008-2009.
The products that we offer are
essentially similar to products from a
conventional bank. We offer our clients
current accounts and savings accounts
as well as investment deposits, for
example, investment accounts through
Wakala and Mudaraba deposits. We
also offer financing products for our
customers. We have been doing this for
corporate customers for seven years and
now we are on the verge of launching
similar financing products for our retail
customers. This year, we launched the
retail business with the opening of our
flagship branch in Almaty, at Esentai
Tower, starting with deposits, card
products and accounts. As mentioned,
our financing products will be rolled out
shortly to retail customers, including
credit cards and home mortgages.
Many of these products are effectively
similar to conventional banking but are
structured differently to be Shariah
compliant.
As you rightly mentioned, it is a small
number. It is probably a bit more than
0.1% now, although not too much
more as a function of total assets. If
we were to see growth of up to 2% of
total assets, this would be very material
growth. Over the medium term, we can
realistically expect the sector to grow to
become 2-3% of total banking assets in
Kazakhstan. And I suspect we will start to
see that as we roll out our retail products.
In five words, why should the
customer consider Islamic banking
and specifically Al Hilal Bank?
I have thought about this sort of question
in the past. I might even put it down
to four words – safe, secure, ethical
banking. Our implied credit rating and the
ownership support that we have from the
government of Abu Dhabi obviously give
us a platform to offer a very safe and
secure product to our customers. And the
nature of Islamic banking and its ethical
underpinnings are very interesting and
positive aspects for people to look for.
We still see ourselves as a young
brand in Kazakhstan. Until recently, our
corporate clients certainly knew who we
were and had positive relationships with
us for a number of years. But there is a
lot to be seen from us, we have a very
positive story to be able to tell right now.
With the roll out of the retail business,
Al Hilal will be in people’s sight and
consciousness going forward as a more
active brand in the retail space. We’re
looking forward to positive prospects
over the next few years.
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