Mashreq unit eyes 5% share in sukuk market

Mashreq Al Islami, the Islamic arm of Mashreq bank aims to capture five per cent of the UAE market in three years as sharia-compliant products get top priority, the company's chief executive said.

Mashreq Al Islami, formerly known as Badr al Islami, has about a three per cent market share now, Moinuddin Malim said.

He said the company also aspires to count for 20 per cent of the balance sheet of its parent, UAE-based Mashreq Group, in three years.

"Over the last few years, we have successfully demonstrated to the shareholders of the bank that the Islamic finance model is very viable," Malim said. He added that Mashreq is actively marketing and distributing the Islamic finance products to customers, ahead of its own conventional offerings.

"We are selling Islamic first," Malim said, adding that the company was laying down the foundation to grow its Islamic bank by providing its front-office employees in all of its branches with sharia training and certification.

Mashreq Al Islami may consider acquisitions down the road to grow but is currently focused on increasing its sharia-compliant product offerings, he said.

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