Documenti di Didattica
Documenti di Professioni
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20124656
ASSAD RASHID
20110713
Section: 05
Submitted to: Dr. Yulia Vorobeva
Table of Contents
1. Executive
Summary....4
2. Introduction
....5
3. Literature
review
....6
4. Procedures...
9
5. Findings...1
0
5.1 Questionnaire Findings10
5.2 Interview Findings...25
6. Conclusion...
29
7. Recommendation
.30
8. References...
.31
9. Appendix..
32
A Copy of questionnaire
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Table of figures
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1. Executive Summary
In brief, the report sets out to study the Role of Islamic Banking in
the Gulf region and how it had influenced the different customers
in their selection of the two banking systems i.e. the Islamic and
the conventional banking systems. In order to do so we 72
questionnaires were distributed to random people and an
interview was conducted. The report concludes about why Islamic
banking is the fastest growing banking system and leading the
4 | Page
2. Introduction
While the Islamic banking initially was developed as a result of
the religious prohibition of the payment or receipt of interest to
fulfill the needs of Muslims, Islamic banking has now gained
universal acceptance. Islamic Banking is now recognized to be
one of the fastest growing areas in banking and finance sectors.
The first sign of an Islamic banking system apparently appeared
5 | Page
in the early 1970s. The Dubai Islamic Bank (DIB) in the United
Arab Emirates was known to be the first Islamic bank followed by
the establishment of the International Islamic Development Bank
(IDB) in Jeddah, in Saudi Arabia.
Islamic Banking is a banking system which is founded on the
Principal of Islamic Law (Shariah) and directed by Islamic
economics. Two of the basic principles behind Islamic banking are
the sharing of profit and loss and the significant prohibition of the
collection and payment of interest as the collection of interest is
not permitted under the Islamic law.
The purpose of this report is to clearly define the importance of
Islamic banking in the GCC region and to differentiate between
conventional banking and Islamic banking, since the GCC
countries have a dual banking system in which Islamic banks
operate side by side the conventional banks.
In order to better understand the scope of Islamic Banking and
to differentiate between the Islamic banking and the conventional
banking systems the following research instruments were used:
1. Questionnaire
2. Interview
This report is a course requirement for English 341 (Report
Writing for Business), and it was requested by Dr. Yulia Vorobeva,
English lecturer and submitted on the 27th of December, 2015 by
Naveed Karim Baksh and Assad Rashid.
3. Literature Review
Islamic banks were initially established to reshuffle the Muslim
financial contracts and activities so that they were
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7 | Page
9 | Page
4. PROCEDURES
A research was carried out to find the importance Islamic
banking have in the Gulf region and to find the difference
between the two banking systems, the Islamic and the
conventional banking systems. For the purpose of this
research a questionnaire was distributed to a random sample
of 72 customers who are connected to the two banking
systems in order to find the influence of the two banking
systems on each customer. Also, it was to identify the factors
that led them to choose a particular banking system and
how much satisfied they were after using the banks services.
An interview was conducted with one of the employee of
Shariyah Review Bureau to find out about the demand of
Islamic Banking in Bahrain and the Gulf region.
10 | P a g e
5. Findings
5.1 Questionnaire findings
Figure 1.A
Male
32%
Female
50; 68%
11 | P a g e
Figure 2.A
7% 1% 1%
18 - 24
25 - 35
36 - 40
Above 40
90%
12 | P a g e
Figure 3.A
1% 5%
5%
Businessman
Unemployed
Employee
Student
Other
88%
13 | P a g e
Figure 4.A
Primary
3%3%
26%
Secondary
Bachelor
Master
Other
68%
Figure 5.A
14 | P a g e
5%
Yes
No
95%
Figure 6.A
15 | P a g e
8%
Yes
No
92%
Figure 7.A
16 | P a g e
Islamic Banks
Conventional Banks
37%
56%
7%
Figure 8.A
17 | P a g e
27%
Yes
No
73%
the
difference
between
the
Islamic
banks
and
Figure 9.A
18 | P a g e
3%
12%
7%
35%
There is no Interest in
Islamic Banks
Friends or Family
Media
other
43%
Figure 10.A
19 | P a g e
15%
44%
15%
25%
Figure 11.A
20 | P a g e
What are the factors that led you to choose a conventional bank?
29%
33%
Media
other
16%
22%
Figure 12.A
21 | P a g e
15%
4% 11%
Lack of understanding
and information
Insufficient branch
network for Islamic
Banks
Lack of Investment
opportunity
Other
27%
44%
of
investment
opportunity
was
the
reason
that
22 | P a g e
Figure 13.A
4% 5%
Slightly satisfied
29%
Its fine
Slightly dissatisfied
Extremely dissatisfied
44%
18%
Figure 14.A
23 | P a g e
11%
Yes
No
89%
Figure 15.A
24 | P a g e
10%
Yes
No
90%
The graph above shows that around 90% of the respondents have
the intention to use Islamic banking with 10% of them do not
have any intention to use it.
you are not able to repay the amount to the bank, then the bank
will not charge you more than the initial amount agreed on
between the two, that is nothing less and nothing more because
if u pay more than the agreed upon then that will be deemed as
interest.
27 | P a g e
7) What can you say about impact the economic crisis had on
Islamic Banking during?
28 | P a g e
29 | P a g e
6. Conclusion
As seen from the research above we can conclude that the
Islamic banking as whole is really influenced the Muslims and
not the non-Muslims in the gulf region and it plays a major
role in the gulf economies. There are many reasons why
banking consumers in the gulf decided to choose Islamic
Banking services. Basically, it is because Islamic Banking
consumers feel that religious factor had influenced them.
The responsibility of being a Muslim had played a major part
30 | P a g e
7. RECOMMENDATION
31 | P a g e
32 | P a g e
8. REFERENCE
1. http://uk.reuters.com/article/2008/02/05/specialeventiiislamic-summit-quotes-dc-idUKL0446119020080205
2. Zaher, T.S. and Hassan, M.K., (2001). A Comparative
Literature Survey of Islamic Finance and Banking. Financial
Markets, Institutions and Instruments [online], 10(4) pp. 156199.
3. Hassan, M.K., Mervyn, K.L. (2007). Islamic Banking: An
introduction and Overview. In: Handbook of Islamic Banking,
Edward Elgar Publishing Press, UK, pp. 1-17.
4. Badreldin, A.M., (2009). Measuring the Performance of
Islamic Banks by Adapting Conventional Ratios. German
University of Cairo. Working paper No. 16[online]. Available
from: http://mgt.guc.edu.eg/wpapers/016badreldin2009.pdf
5. Molyneux, P. and Iqbal, M., (2005). Thirty Years of Islamic
Banking: History, Performance and Prospect. Islamic
Economics [online], 19(1) pp. 37-39.
Available from:
http://islamiccenter.kaau.edu.sa/arabic/Magallah/Pdf/19_1/19
1-BReveiw_11.pdf
6. http://eprints.lse.ac.uk/55281/1/Wilson-2009.pdf
33 | P a g e
9.APPENDIX
A copy of Questionnaire
1. What is your Gender?
o Male
o Female
2. What is your Age?
o Under 18
o 18 24
o 25 35
o 36 40
o Above 40
3. What is your Profession?
o Student
o Employee
o Businessman
o Unemployed
o Other
4. What is your educational qualification?
o Primary
o Secondary
o Bachelors
o Masters
o Other
5. Is your religion Islam?
o Yes
o No
o No
10.
o
o
o
o
11.
What are the factors that led you to choose a
conventional bank?
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13.
How satisfied are you with the services provided
by the Islamic bank?
(Answer only if you are currently using an Islamic bank)
o Extremely satisfied
o Slightly satisfied
o Its fine
o Slightly dissatisfied
o Extremely dissatisfied
14.
Would you recommend Islamic banking to anyone?
o Yes
o No
15.
Do you have any intention of using Islamic
Banking in the future?
o Yes
o No
36 | P a g e
37 | P a g e