Title: The impact of the global economic crisis on the Islamic banks and financial institutions across UAE

Authors: Mohammed Naim Chaker, Abdalla Salih

Addresses: Economics and Finance Department, College of Business Administrations, Ajman University of Science and Technology, P.O. Box 346, Ajman, UAE. ' Accounting Department, College of Business Administrations, Ajman University of Science and Technology, P.O. Box 346, Ajman, UAE

Abstract: Islamic banks are making significant contributions to the banking industry. Most of the studies have found that Islamic banks are more efficient and profitable than their conventional counterparts. The number of Islamic banks has been growing in the last few years, and they operate in more than 75 countries. This study examines the performance of the Islamic banks in UAE in comparison with the conventional banks. Four Islamic banks and four conventional banks were selected to measure the performance by using the financial ratio methodology. The findings of this study indicate that the performance of Islamic banks during the global financial crisis was better than that of the conventional banks in terms of higher profitability ratio, liquidity ratio, and market or EPS ratio. This research project could be extended to cover more banks from GCC countries or from other countries.

Keywords: Islamic banking; global financial crisis; bank performance; Islamic banks; UAE; United Arab Emirates; profitability ratio; liquidity ratio; market ratio; EPS ratio.

DOI: 10.1504/JIBED.2010.036996

Journal for International Business and Entrepreneurship Development, 2010 Vol.5 No.2, pp.113 - 125

Published online: 20 Nov 2010 *

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