Globalization dynamics enhancing productivity, Efficiency, and performance of islamic banking in the Middle east

• Main Authors: Ribed Vianneca W. Jubilee, Ayesha Saddique, Andrew Saw Tek Wei, Zurina binti Patrick
• Format: Article
• Language: English
• Published: Universal Publishers 2024
• Subjects: HC10-1085 Economic history and conditions; HG3810-4000 Foreign exchange. International finance. International monetary system
• Online Access: https://eprints.ums.edu.my/id/eprint/42354/1/FULL%20TEXT.pdf; https://eprints.ums.edu.my/id/eprint/42354/

Purpose: The review study plans to investigate how the dynamics of globalization affect the performance, efficiency, and productivity of Islamic financial institutions in the Middle East. Design/methodology/approach: An extensive examination of extant literature is carried out to explores the ways by which globalization impacts the functions and consequences of Islamic banks within the area. The performance and efficiency of Islamic banks in middle east were determine by using a related financial ratio such as Capital-asset ratios, deployment ratio and profitability ratios from year 2001 until 2024 using data of several Islamic banks and financial institutions. Findings: Results from this paper suggest that Islamic banks in the Middle East have demonstrated robust performance in recent years. Based on empirical findings, Islamic banks in the Middle East demonstrate significant efficiency in several aspects. However, there is a requirement for further progress, particularly in terms of adopting technology and optimising operational processes to sustain long-term competitiveness. Research limitations/implications: This research provides Islamic banks in the Middle East with strategies to effectively employ theoretical frameworks and empirical data. Furthermore, this paper provides strategies for Islamic banks in the Middle East to capitalise on the benefits of globalisation while mitigating its risks, drawing on theoretical frameworks and empirical evidence. Originality/value: The integration of Islamic banking into the global financial system leads to conflicts between Shariah principles and existing practices. This necessitates the development of innovative approaches to ensure compliance without compromising authenticity