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.

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