UAE Islamic banking promotional strategies: an empirical review

Abstract

PurposeThe purpose of this paper is to develop, measure and empirically validate the promotional techniques adopted by Islamic banks and the effect of these methods on consumer interest in Islamic banking products and services in the UAE (United Arab Emirates).Design/methodology/approachData were collected through 250 questionnaires distributed randomly to customers of five leading UAE Islamic banks and, following outlier analysis, the final sample size was reduced to 205, representing a sample of 82% of polled respondents. Multiple regression analysis was used on four key factor determinants that contributed towards the customers’ attitude in determining the most influential promotional strategies adopted by the Islamic banks.FindingsThe study found that the promotional strategies adopted by the UAE Islamic banking sector are having a significant impact on customer attitude towards Islamic banking products and services. The use of mass media has been partially successful, while the use of social media as a promotional tool is predicted to further enhance competitiveness for the UAE Islamic banking industry.Research limitations/implicationsThis paper is limited to five leading UAE Islamic banks and a specified set of promotional techniques nevertheless its findings have potential implications and can be extended and validated through studying the customers’ attitude towards promotion techniques used by Islamic banks in the GCC and MENA regions.Originality/valueThis paper adds value to the limited research on modern marketing and promotional strategies adopted by UAE-based Islamic banks and while regionally specific, it is valuable in its potential application to the Islamic banking sector in the entire GCC and MENA region.