Efficiency measurement of Islamic and conventional banks in Saudi Arabia:an empirical and comparative analysis

Saudi Arabia, beside Malaysia and many other Muslim countries, is one of those countries where Islamic and conventional banking operate in parallel. Over the last decade, the country’s banking industry is growing at rapid pace that accounts for the largest share in GCC. The present study measures an...

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Main Authors:	Nauman Khan, Muhammad, Amin, Md Fouad, Khokhar, Imran, Hassan, Mehboob ul, Ahmad, Khaliq
Format:	Article
Language:	English English
Published:	IIUM Press, International Islamic University Malaysia 2018
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/68382/ http://irep.iium.edu.my/68382/ http://irep.iium.edu.my/68382/1/05-AsShajarah-Khaliq-Dr%20Nauman%20et%20al.pdf http://irep.iium.edu.my/68382/7/68382_Efficiency%20measurement%20of%20islamic%20and%20conventional_scopus.pdf

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recordtype	eprints
spelling	iium-683822019-04-09T05:23:09Z http://irep.iium.edu.my/68382/ Efficiency measurement of Islamic and conventional banks in Saudi Arabia:an empirical and comparative analysis Nauman Khan, Muhammad Amin, Md Fouad Khokhar, Imran Hassan, Mehboob ul Ahmad, Khaliq HG3368 Islamic Banking and Finance Saudi Arabia, beside Malaysia and many other Muslim countries, is one of those countries where Islamic and conventional banking operate in parallel. Over the last decade, the country’s banking industry is growing at rapid pace that accounts for the largest share in GCC. The present study measures and compares the performance of Saudi conventional and Islamic banking industry and identifies the areas where the strategic measures are required to improve the banking performance. It applies non-parametric Data Envelopment Analysis (DEA) for the data from 2008-2016 of Saudi banking industry and provides comprehensive empirical results at individual bank vis-a-vis industry levels. The empirical results demonstrate a mix trend among the banks in achieving technical, pure technical and scale efficiency. It is observed that with the common pledge to expanding market share and performance, both conventional and Islamic banks have been successful in improving their levels of efficiency. At individual bank level, Al-Rajhi is the only bank that has achieved the highest score in terms of technical, pure technical and scale efficiency, while in the conventional banking group, both Saudi Hollandi and National Commercial banks are found on the top position. Despite the growth of incomes and deposits of entire banking industry in Saudi Arabia, this study particularly recommends for the Islamic banks to redirect their short term and long-term marketing strategies and to focus on improving their management skills at the branch level. IIUM Press, International Islamic University Malaysia 2018 Article PeerReviewed application/pdf en http://irep.iium.edu.my/68382/1/05-AsShajarah-Khaliq-Dr%20Nauman%20et%20al.pdf application/pdf en http://irep.iium.edu.my/68382/7/68382_Efficiency%20measurement%20of%20islamic%20and%20conventional_scopus.pdf Nauman Khan, Muhammad and Amin, Md Fouad and Khokhar, Imran and Hassan, Mehboob ul and Ahmad, Khaliq (2018) Efficiency measurement of Islamic and conventional banks in Saudi Arabia:an empirical and comparative analysis. Al-Shajarah, Special Issue-2018. pp. 111-134. ISSN 1394-6870 http://journals.iium.edu.my/shajarah/index.php/shaj/article/view/718/316
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Nauman Khan, Muhammad Amin, Md Fouad Khokhar, Imran Hassan, Mehboob ul Ahmad, Khaliq Efficiency measurement of Islamic and conventional banks in Saudi Arabia:an empirical and comparative analysis
description	Saudi Arabia, beside Malaysia and many other Muslim countries, is one of those countries where Islamic and conventional banking operate in parallel. Over the last decade, the country’s banking industry is growing at rapid pace that accounts for the largest share in GCC. The present study measures and compares the performance of Saudi conventional and Islamic banking industry and identifies the areas where the strategic measures are required to improve the banking performance. It applies non-parametric Data Envelopment Analysis (DEA) for the data from 2008-2016 of Saudi banking industry and provides comprehensive empirical results at individual bank vis-a-vis industry levels. The empirical results demonstrate a mix trend among the banks in achieving technical, pure technical and scale efficiency. It is observed that with the common pledge to expanding market share and performance, both conventional and Islamic banks have been successful in improving their levels of efficiency. At individual bank level, Al-Rajhi is the only bank that has achieved the highest score in terms of technical, pure technical and scale efficiency, while in the conventional banking group, both Saudi Hollandi and National Commercial banks are found on the top position. Despite the growth of incomes and deposits of entire banking industry in Saudi Arabia, this study particularly recommends for the Islamic banks to redirect their short term and long-term marketing strategies and to focus on improving their management skills at the branch level.
format	Article
author	Nauman Khan, Muhammad Amin, Md Fouad Khokhar, Imran Hassan, Mehboob ul Ahmad, Khaliq
author_facet	Nauman Khan, Muhammad Amin, Md Fouad Khokhar, Imran Hassan, Mehboob ul Ahmad, Khaliq
author_sort	Nauman Khan, Muhammad
title	Efficiency measurement of Islamic and conventional banks in Saudi Arabia:an empirical and comparative analysis
title_short	Efficiency measurement of Islamic and conventional banks in Saudi Arabia:an empirical and comparative analysis
title_full	Efficiency measurement of Islamic and conventional banks in Saudi Arabia:an empirical and comparative analysis
title_fullStr	Efficiency measurement of Islamic and conventional banks in Saudi Arabia:an empirical and comparative analysis
title_full_unstemmed	Efficiency measurement of Islamic and conventional banks in Saudi Arabia:an empirical and comparative analysis
title_sort	efficiency measurement of islamic and conventional banks in saudi arabia:an empirical and comparative analysis
publisher	IIUM Press, International Islamic University Malaysia
publishDate	2018
url	http://irep.iium.edu.my/68382/ http://irep.iium.edu.my/68382/ http://irep.iium.edu.my/68382/1/05-AsShajarah-Khaliq-Dr%20Nauman%20et%20al.pdf http://irep.iium.edu.my/68382/7/68382_Efficiency%20measurement%20of%20islamic%20and%20conventional_scopus.pdf
first_indexed	2023-09-18T21:37:03Z
last_indexed	2023-09-18T21:37:03Z
_version_	1777412890729381888

Efficiency measurement of Islamic and conventional banks in Saudi Arabia:an empirical and comparative analysis

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