Jordan's Islamic banking assets has grown at an annual rate of 13% and now accounts for 5% of the country's total banking assets, though Islamic insurers have been more sluggish in their performance, according to a recent KFH-Research report on the Kingdom's Islamic finance sector.
The report said that Islamic banks have outperformed conventional banks in the growth of deposits and financing, reflecting a strong demand for Islamic transactions. On the contrary, the report noted that takaful companies haven’t been performing as well, but things are expected to improve after recently receiving government backing for the growth of takaful in Jordan.
The Jordanian government looks to cement the role of Islamic finance in the kingdom by establishing a leading regional center for Islamic finance, the report noted.
As at end-2011, the total assets of Jordan’s four Islamic banks stood at JOD3.25 billion (US$ 4.58 billion) with a 13.1% y-o-y growth (2010: JOD2.87 billion). On the other hand, there are currently three takaful companies operating in the Kingdom. Gross premiums in Jordan increased by 6.8% to $343.4 million at the end of June, compared to $321.7 million in 2011.