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High commodity prices will sustain the recovery of Islamic banks

High commodity prices and the easing of pandemic restrictions will support strong economic recovery across major Islamic finance markets over the next 12 to 18 months, boosting the financial performance of Islamic banks. The Gulf states, Malaysia (A3 stable) and Indonesia (Baa2 stable) are benefitting from a price surge in key exports like hydrocarbons and palm oil. The economic rebound will keep the asset quality of Islamic banks stable while driving up profitability. Islamic banks can therefore maintain strong capital....

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