Development of Islamic Banking in Uae
Development of Islamic Banking in the UAE
Selected Topics in Finance
Development of
Islamic Banking in the UAE
Prepared by : Dalida Cheikh
ID number : 200911197
Supervised by : Dr. Al Gielani Al Sherief
Summer1- 2012
Contents
Abstract 3 Introduction 3 Islamic Banks and Conventional Banks 4 Comparison of performance 2005 - 2010 5 Findings 7 Conclusion 13 References 14 Appendix 15
Acknowledgements
I would like to express my special gratitude to my boss, Prof. Badr Aboul-Ela for his continuous encouragement, support and guidance, special appreciation to my teacher Dr. Al Gielani Al Sherief for his efforts in providing me with the required knowledge and for improving of my research skills. I would also like to thank Ms. Wafaa from the Central Bank for providing me with the required data.
Abstract
Though overall economic performance in 2008 was the worst since the Great Depression, there is significant variation in the effect of this Global Crisis on each of the Islamic Banks and Conventional Banks.
This paper aims at studying the performance and profitability of “Abu Dhabi Islamic Bank (ADIB)” during and after the crisis of 2008, then, it will be compared with the financial status of “Abu Dhabi Commercial Bank (ADCB)” for the same period. The ratios and charts in this paper are calculated and formulated based on financial reports released by both banks on annual and quarterly basis. Return on Assets and Return on Equity were used as the proxies for the profitability.
However, it is concluded from this study that ADIB as an Islamic bank was less affected by the economic crisis of 2008 than ADCB conventional bank.
Introduction
Banking Industry is one of the most important industries that supports the development of a country. Like some other financial institutions and capital markets, banks are the institutions which are significantly needed by the real sectors in doing their business.
An Islamic bank is a
Selected Topics in Finance
Development of
Islamic Banking in the UAE
Prepared by : Dalida Cheikh
ID number : 200911197
Supervised by : Dr. Al Gielani Al Sherief
Summer1- 2012
Contents
Abstract 3 Introduction 3 Islamic Banks and Conventional Banks 4 Comparison of performance 2005 - 2010 5 Findings 7 Conclusion 13 References 14 Appendix 15
Acknowledgements
I would like to express my special gratitude to my boss, Prof. Badr Aboul-Ela for his continuous encouragement, support and guidance, special appreciation to my teacher Dr. Al Gielani Al Sherief for his efforts in providing me with the required knowledge and for improving of my research skills. I would also like to thank Ms. Wafaa from the Central Bank for providing me with the required data.
Abstract
Though overall economic performance in 2008 was the worst since the Great Depression, there is significant variation in the effect of this Global Crisis on each of the Islamic Banks and Conventional Banks.
This paper aims at studying the performance and profitability of “Abu Dhabi Islamic Bank (ADIB)” during and after the crisis of 2008, then, it will be compared with the financial status of “Abu Dhabi Commercial Bank (ADCB)” for the same period. The ratios and charts in this paper are calculated and formulated based on financial reports released by both banks on annual and quarterly basis. Return on Assets and Return on Equity were used as the proxies for the profitability.
However, it is concluded from this study that ADIB as an Islamic bank was less affected by the economic crisis of 2008 than ADCB conventional bank.
Introduction
Banking Industry is one of the most important industries that supports the development of a country. Like some other financial institutions and capital markets, banks are the institutions which are significantly needed by the real sectors in doing their business.
An Islamic bank is a
References: 1- World Bank annual report 2011 2- ADIB annual reports (2005, 2006, 2007, 2008, 2009, 2010) 3- ADCB annual reports (2005, 2006, 2007, 2008, 2009, 2010) 4- ADIB quarterly reports (2008 Q1 - Q2 - Q3 - Q4, 2009 Q1 - Q2 - Q3 - Q4, 2010 Q1 - Q2 - Q3 - Q4, 2011 Q1 - Q2 - Q3 - Q4) 5- ADCB quarterly reports (2008 Q1 - Q2 - Q3 - Q4, 2009 Q1 - Q2 - Q3 - Q4, 2010 Q1 - Q2 - Q3 - Q4, 2011 Q1 - Q2 - Q3 - Q4) -------------------------------------------- [ 1 ]. World Bank annual report 2011 - p 69 [ 2 ]. ADIB annual reports (2005, 2006, 2007, 2008, 2009, 2010) [ 3 ]. ADCB annual reports (2005, 2006, 2007, 2008, 2009, 2010) [ 4 ]. Data collected from ADIB & ADCB quarterly reports for the period 2008 - 2010