Standard Chartered Private Bank has announced the launch of a comprehensive suite of Islamic financial solutions mainly aimed at its high net worth individuals (HNWI) customers.

The solutions include fiduciary deposits, property financing, equities, Islamic fixed income instruments (Sukuks), mutual funds (including Exchange-Traded Funds), third-party structured products and discretionary services, said a statement from the banking giant.

These are now available to clients across the Private Bank’s booking centres in London, Geneva, Jersey and Dubai, it added.

It is being delivered in collaboration with Standard Chartered Saadiq, the Bank’s Islamic banking arm which has over 18 years of experience in Islamic banking and finance, and has onshore presence in six markets.

Announcing the launch in Dubai, Khalid El Gibaly, the regional head of consumer banking, UAE and Middle East, said, “We have identified a latent demand among our existing and prospective private banking clients for Islamic private banking solutions. With our deep understanding of the region, strong international footprint across the world’s most dynamic markets and a wide experience in Islamic Banking, we are well-placed to meet this need.'

'The launch of our Global Islamic Private Banking offering out of the region is testament to our strategic focus on the Middle East region. Our new offering is not only innovative and unique in the region; it also aims to bridge the service gap between conventional and Islamic Banking to provide our clients with an exceptional banking experience,” he explained.

El Gibaly pointed out that Islamic banking had become a significant part of the mainstream as the gap between conventional and Islamic banking solutions has narrowed substantially.

Islamic banking assets, which are growing twice as fast as conventional banking assets, are expected to reach $1.1 trillion globally in 2012, up 33 per cent from 2010, he revealed.

'With the fast development of this industry, Muslim HNWIs are increasingly expecting Shariah compliance in managing their wealth, making Islamic wealth management solutions a key market need,' he added.

Standard Chartered Private Bank said its Islamic Financial Solutions will help fill the industry gaps in the availability of Shariah compliant wealth management products and provide additional impetus for growth in the Islamic banking industry as it deepens the product set and brings into its folds a whole new customer segment.

Stephen Richards Evans, the regional head of Private Banking, EMEA, India and Americas, Standard Chartered said: “In the GCC alone, there are more than 500,000 HNWIs with net investible assets of over $1.7 trillion and this number is rapidly growing in light of relatively better economic conditions in the region compared to other parts of the world.'

However, this segment remains one of the most underdeveloped and underserved amongst all the Islamic banking client segments.

'Through our launch today, we aim to fulfil one of the pillars of our brand promise, ‘Here for good, Here for clients,’ he added.

Wasim Akhtar Saifi, the group head of Islamic Banking, Standard Chartered Saadiq said although Islamic banking solutions have become increasingly available, there are few viable Shariah compliant alternatives for HNWIs.

'Muslim HNWIs are restricted to the conventional offering of traditional private banks. There is a need to adopt a more holistic view towards wealth management for this segment.'

'The launch of Islamic financial solutions for our private banking clients broadens the overall spectrum of wealth management solutions available to those seeking Shariah compliance. We plan to continue to expand the range of Shariah compliant solutions to address evolving client needs,' he added.-TradeArabia News Service