Qatar's move to stop Sharia-compliant lending by conventional banks could trigger similar moves across the region as Gulf states jostle for position in a market estimated to be worth US$800 billion (Dh2.93 trillion).
Qatar's central bank this week ordered conventional banks to shut down their Islamic operations by the end of the year amid worries about an overlap between the two forms of banking.
Industry experts say this action will prompt other Gulf countries to follow suit. Separating Islamic and conventional banking is "almost an infectious thing", said Ghanem Nuseibeh, a partner at Cornerstone Global Associates. "Now Qatar has done it, others in the Gulf might have to do it."
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