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Islamic Banking in the Middle-East and North-Africa (MENA) Region

Author

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  • SALMAN SYED ALI

    (Islamic Research & Training Institute)

Abstract

Islamic finance has now become an important element in the development agenda of the Middle East and North African (MENA) countries. It is also gaining significance in the financial landscape of the region as well as of the individual countries. As a growing business it caters to the financial needs of the people without conflicting with their social and religious values. Despite this reality, little systematic and consistent analysis exists in the literature on the asset and liability structure of Islamic banks in the region and across individual countries. Even lesser is known on what drives Islamic banking growth. This paper addresses this gap and explores how the structure of the Islamic banking sector has been evolving in the MENA region in recent years, and how it is growing in terms of assets, liabilities, financing and funding structures within the region and across different countries. It also provides an exploratory analysis of relative importance of the various factors responsible for the growth of Islamic banking in the region. The financial crisis provided us with a natural experiment to evaluate the contribution of Islamic banking towards resilience and inclusiveness of financial sector by analyzing the performance of these banks during this period.

Suggested Citation

  • Salman Syed Ali, 2012. "Islamic Banking in the Middle-East and North-Africa (MENA) Region," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 20, pages 1-44.
    • Handle: RePEc:ris:isecst:0019
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    References listed on IDEAS

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    3. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    4. Patrick A. Imam & Mr. Kangni R Kpodar, 2010. "Islamic Banking: How Has it Diffused?," IMF Working Papers 2010/195, International Monetary Fund.
    5. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
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    Cited by:

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    2. Asongu, Simplice A. & Biekpe, Nicholas, 2018. "ICT, information asymmetry and market power in African banking industry," Research in International Business and Finance, Elsevier, vol. 44(C), pages 518-531.
    3. Ferry Syarifuddin, 2022. "Is Islamic Banks Better Than Conventional Banks In The Time Of Uncertainty?," Working Papers WP/06/2022, Bank Indonesia.
    4. Tharwah Shaalan, 2018. "Classification of Lending Risks and Interpretation of Operational Efficiency in Islamic Banks Registered on the Bahrain Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 151-156.
    5. Raouf, Hajar & Ahmed, Habib, 2022. "Risk governance and financial stability: A comparative study of conventional and Islamic banks in the GCC," Global Finance Journal, Elsevier, vol. 52(C).
    6. Aljughaiman, Abdullah A. & Cao, Ngan Duong & Trinh, Vu Quang & Albarrak, Mohammed & Vo, Xuan Vinh, 2023. "Does gender diversity affect financial strength differently in conventional and Islamic banks? Evidence from MENA countries," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).

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