Strong growth predicted in IT spending by GCC’s Islamic finance industry
The total IT spending in the Islamic banking sector in the Gulf countries reached $400 million in 2011. Notable growth in the following years is expected. The financial crisis since 2008 has hit the Islamic financial sector as well, causing consolidation of institutions, merging of banks etc. Even though Islamic banks have remained on a positive financial footing during the post-crisis period in comparison with conventional banks, the former have had problems with profitability due to rising costs and operational inefficiencies. In order to optimize current infrastructure, banks invest in one major technology area - implementation and adoption of cutting-edge software and IT services.