Issues and Challenges 381
in the world as compiled by Banker (2010). Ranking of Al-Rajhi Bank,
Kuwait Finance House, and Dubai Islamic Bank Ranks were 242, 270, and
383 respectively. Large institutions have signifi cant potential for effi ciency
gains from economies of scale and scope, organizational effi ciency, and a
lower cost of funding. Given their size, Islamic banks are unable to reap
these benefi ts.^10
In the absence of debt and derivatives markets and in light of the under-
development of equities markets, fi nancial intermediaries will be required
to take up the slack. In the changing global fi nancial landscape, Islamic
banks will have to go beyond their traditional role as commercial banks
and develop areas such as securities, risk management, retail banking, asset
management, and insurance that are currently absent or inadequate.
TABLE 17.4 Top Islamic Banks and Islamic Windows as of 2010
Name CountryShari’ah
Compliant
Assets ($m)Return on
Assets (RoA)Islamic Banks
1 Al-Rajhi Bank Saudi Arabia 45,528 4.03
2 Kuwait Finance House Kuwait 40,318 0.27
3 Dubai Islamic Bank U.A.E. 22,835 0.59
4 Abu Dhabi Islamic Bank U.A.E. 18,620 0.94
5 HSBC Amanah (Global) U.K. 16,700 n/a
6 Bank Rakayat Malaysia 14,785 3.36
7 Al Baraka Banking Group Bahrain 13,623 0.99
8 Maybank Islamic Berhad Malaysia 12,402 1.02
9 Qatar Islamic Bank Qatar 10,789 4.9310 Bank Islam Malaysia
Berhad
Malaysia 9,268 0.27Islamic Windows
1 National Commercial
Bank (Jeddah)Saudi Arabia 17,113 1.722 Riyadh Bank Saudi Arabia 11,913 1.8
3 Saudi British Bank Saudi Arabia 11,198 n/a
4 Arab National Bank Saudi Arabia 8,507 2.05
5 Banque Saudddi Fransi Saudi Arabia 8,125 2.00Source: Banker (2010)—This list excludes banks based in Islamic Republic of Iran.
The Banker, Top 500 Islamic Financial Institutions, The Banker, Special
Supplement, Nov. 2010, p. 34.
http://www.thebanker.com/Banker-Data/Banker-Rankings/Top-500-Islamic-
Financial-Institutions