Research Korner

MBA 	Program 	 	  	 	  	 	  	 	 	Dissertation Proposal 	 	  	 	  	 	  	 	 	Islamic banking 	 	An 	analysis of the reasons for its growth in the Middle East during the last 	decade 	  	 	  Table of Contents  TOC \o "1-3" \f \h \z Chapter 1. PAGEREF _Toc222393129 \h 3 Problem and its Background.. PAGEREF _Toc222393130 \h 3 1.0 Introduction.. PAGEREF _Toc222393131 \h 3 1.1 Objective. PAGEREF _Toc222393132 \h 5 1.2 Overview / Description.. PAGEREF _Toc222393133 \h 5 1.3 Significance of the Study. PAGEREF _Toc222393134 \h 6 Chapter 2. PAGEREF _Toc222393135 \h 6 Review of Relevant Literature.. PAGEREF _Toc222393136 \h 6 2.1 Introduction.. PAGEREF _Toc222393137 \h 6 2.2 Overview of Islamic Banking.. PAGEREF _Toc222393138 \h 7 2.3 Reasons for Islamic Banking Growth.. PAGEREF _Toc222393139 \h 8 2.4 Recent Performance of Islamic Banks. PAGEREF _Toc222393140 \h 10 Chapter 3. PAGEREF _Toc222393141 \h 14 Research Methodology.. PAGEREF _Toc222393142 \h 14 3.1 Research Approach.. PAGEREF _Toc222393143 \h 14 3.2 Data Collection Method.. PAGEREF _Toc222393144 \h 15 3.2.1 Primary Research. PAGEREF _Toc222393145 \h 15 3.2.2 Secondary Research. PAGEREF _Toc222393146 \h 15 3.3 Sample Participants. PAGEREF _Toc222393147 \h 16 3.4 Survey/Questionnaire. PAGEREF _Toc222393148 \h 16 3.4 Ethical Considerations. PAGEREF _Toc222393149 \h 19 3.5 Data Processing.. PAGEREF _Toc222393150 \h 20 3.6 Statistical Treatment of the Data. PAGEREF _Toc222393151 \h 20 Chapter 4. PAGEREF _Toc222393152 \h 21 Data Analysis and Presentation.. PAGEREF _Toc222393153 \h 21 4.0   Introduction.. PAGEREF _Toc222393154 \h 21 4.1   Demographic characteristics of the respondents. PAGEREF _Toc222393155 \h 22 4.2 Perception of Respondents. PAGEREF _Toc222393156 \h 25 5.0 Summary. PAGEREF _Toc222393157 \h 31 5.1 Conclusion.. PAGEREF _Toc222393158 \h 33 5.2   Recommendation.. PAGEREF _Toc222393159 \h 35 5.3 Future Research Directions. PAGEREF _Toc222393160 \h 36 6.0  References and bibliography.. PAGEREF _Toc222393161 \h 37 7.0 Appendices.. PAGEREF _Toc222393162 \h 39   Chapter 1 Problem and its Background 1.0 Introduction   Over the last decade, Islamic banking has evolved dramatically. It has developed global rates of 10-15 percent per annum and has gotten an increasing number of conventional financial systems.  Currently Islamic financial institutions have spread through 51 countries globally. Accordingly, the contemporary banking system was introduced to Islamic nations during the time when these countries were economically and politically at low ebb, i.e. the late 19th century (Gafoor, 1995).   Most of the banks in the home countries of the Islamic regions established local branches in the capitals of the subject nations and they catered mainly to the import export needs of the foreign businesses.  Banking industries were generally confined to the capital cities as well as the local population remained largely untouched by the banking system.  The local trading community prevented the foreign banks both for religious and nationalistic reasons. Nonetheless, as time went on it became complex to involve in trade and other functions such as current accounts and money transfers. Borrowing from the banks as well as depositing their savings with the bank was rigorously prevented so as to keep away for transacting in interest which is prohibited by their religion (Rad, 1991). However, with the passage of time and other socio-economic forces which demands more involvement in national economic and financial activities, avoids the interaction with the banks became possible.  Islamic banking is a banking activity which is coherent with the Islamic law. It is carried out in line with the rules of Shariah which is known as known as fiqh muamalat which means Islamic rules on transactions.  Islamic Banking does not permit the receiving and paying of riba’ (interest) and encourages greater degree of fairness as well as equity in the conduct of banking operations. Within the Middle East market the Islamic banks has recorded average growth rate higher than the standard growth average rate. Such growth rate are said to be competitive as compared to other banking industries.   Fig.1: Growing faster than the market   Being able to realize the rapid growth of Islamic banking, it is important to determine the factors or the reasons for its growth and development. For this research, the study will attempt to identify the factors that affect the growth of Islamic banking and how it emerges as a competitive industry in the global market.  This paper also aims to determine the difference or similarities of Islamic Banks with other conventional banks. 1.1 Objective   This paper aims on analyzing the major reasons for Islamic Banking growth during the last decade within the Middle East.; from different aspects; including the current offering of the Islamic banks comparing to the conventional banks as well as from the investors/consumer point of view. Specifically, this paper aims on achieving the following objectives: ·         Identify the reasons for Islamic Banking growth ·         To determine the key factors that affect the performance of Islamic banking. ·         Know the perception of the consumers about Islamic Banking.   1.2 Overview / Description   Muslims are disallowed by their religion to conduct in interest (riba) in whatsoever means. Contributing and getting as well as observation are all banned. Therefore an Islamic banking method cannot give any interest to its investors; neither can it requires or obtains any interest from the receivers. Nor could the banks observe or hold accounts of these dealings. Simply the lender is permitted to the return of his funds fully. This is a Qur’anic enjoining. The suggested method of banking abides by with these central Islamic essentials. On the other hand a fundamental dogma of commercial banking is funds assurance. The funds trusted to the bank by an investor must be brought back to him fully. The anticipated method totally follows with this necessity. Islamic banking as exercised today does not supply funds guarantee in all its deposit accounts. In many countries, this is one of the two most important expostulations to allowing the organization of Islamic banks. There is no opposition to giving zero interest on deposits (Karsten 108-42).   1.3 Significance of the Study               This study provides in-depth information on the field of Islamic Banking.  This study would be of great help to researchers who are planning to conduct a research on other issues concerning the subject. This study could serve as an academic tool in informing its reader about the reasons for the growth of Islamic Banking. This research will help in adding to literature that will be helpful to many companies and organizations in the field of banking and finance; it might also open up avenues for other researches in this area. The researcher views that this research might help in answering, to some degree, the questions above. Although a general overview of literature on Islamic Banking will be assessed.   Chapter 2 Review of Relevant Literature 2.1 Introduction             This part of the paper will provide relevant literature about Islamic banking and reasons for its growth. In addition, this literature review will also consider the discussion of other factors that affect Islamic Banking Competencies. 2.2 Overview of Islamic Banking             Nowadays, the Islamic Banking industry stands at approximately hundred billion dollars and includes more than 300 banking and financial establishment inside and outside the Muslim community.  Islamic banking is the product of the collective effort of economists, bankers and other Islamic legal scholars over the years to establish financial solutions which meet the religious needs of Muslims.  Islamic banking can be considered as a young and growing industry. This institution continues to emerge and expand in terms of financial and geographical aspects. Islamic banking is also known to be indigenous and community-focused. Islamic Banking caters to devout Muslims as well as indigenous Muslim societies and in Muslim minorities of non-Muslims nations. Moreover, Islamic banking is also an inclusive paradigm: non-Muslim people and communities which seek ethical financial solutions which have also been appealing to Islamic banking.             The first contemporary Islamic financial establishments has been founded in the 1960s and 70s. From then, Islamic banking has been able to expand to a large number of Muslim nations including GCC as well as the Arab world at Large, those nations in the South and Southeast Asia and also Muslim communities. One of the cities which are considered as an Islamic Banking hub is Bahrain which has a significant activity in London and Kuala Lumpur.  Islamic banking institutions have also taken the form of investment banks, commercial banks, investment and finance industries, insurance companies and financial service industries.              Islamic banking tends to follow various banking models. For instance, those Islamic banking institutions in GCC and West consider private institutions economy. On one hand, banking institutions in Iran, Sudan and Pakistan attempts to consider national Islamic banking systems and dual banking models is considered in Malaysia.  In addition, Islamic Banking also takes different forms like wholly Islamic institutions, Islamic banking windows within traditional banks and Islamic subsidiaries of traditional banking groups.             Most scholars noted that Islamic Banking is still an industry that is evolving, developing and growing. These institutions has gone from operating as commercial banking to syndicated transactions as well as equities, and more recently, into debt issuance and also structured banking and finance products. The sophistication as well as the product offering of these companies has developed along with various transformations. During an earlier period, industry growth was in part of an economic growth reflection in the Islamic community which is driven by oil wealth. This generated a growing middle-wealth segment and thus made the Islamic banking a necessity to the larger Muslim populations in terms of banking and financial services. In the past years, the enhance awareness of Islamic Banking has resulted to conversion from traditional banking and continued high growth which is approximately 15%-20% in key markets (HSBC Amanah, 2009).     2.3 Reasons for Islamic Banking Growth             Islamic Banking growth has been the centre of different economic studies because of its rapid growth in the global market. Islamic banking which conforms to the ideas and philosophies of Islam, provides a potential market of  1.5 billion Muslims which should continue to provide chances for international and local banks.  In the last years, Islamic bank has been able to grow 15%-20% annually with an estimated $270 billion is assets controlled the Islamic banks (Global Finance, 2005). If the Muslim population and per capital income would be given attention, the perceived largest markets for Islamic banking include Indonesia, Turkey, United States, Saudi Arabia and France.  The fastest growing markets include Bahrain, Malaysia, Indonesia, United Arab Emirates and Pakistan. On one hand, the potential for continues growth and development of the Islamic Banks is noted to be significant with some estimation that suggest within eight to ten years as much as half the savings of the global market’s 1.5 billion Muslims will be in Islamic finance. Such indicates a representation of $905 billion in total assets in Middle Eastern nations only (Schmith, 2005). Muslims who are staying and living outside the Middle East is considered to represent an even larger population which include countries like Indonesia, India and Malaysia but also within developed nations which include European countries like France, United Kingdom, Netherlands and  Germany and also the United States.             Islamic banks are also facing various barriers to becoming competitive with traditional banks. Recently, Islamic Bank tools are considered to be more expensive, less service oriented and also unresponsive to change. Such disadvantages could also hold essential implications for developing target markets as well as financing trade in Muslim nations. Historically, Islamic banks fostered trade and business operations in the Muslim countries all throughout the middle Ages (Institute of Islamic Banking and Insurance, 2009), but only happens with conventional banking with the abundance of petrodollars in the middle of 1970s.             In a more recent times, a second recovery in oil prices, an increase in the variety of Sharia-yielding in goods, and the preference for many Muslims to put investments as well as travel in local and regional areas which have revived the sector.  Rather than charging, Islamic banking establishment will usually share some of their borrower’s profits and risks.  Islamic Bank also prevents speculation such as reliance on the occurrence of happenings which may or may not take place and investing in operations which have components which are not in line with the standards of Islam (tobacco, gambling, drugs and alcohol.   2.4 Recent Performance of Islamic Banks   In recent period, the Islamic banking and its financing services have grown phenomenally all over the world. As mentioned above, there are over 300 banks spreading in most nations all over the world. However, the same trend in financial with a concentration all over the trade financial is noted to intensify. Profit sharing and equity participation has been maintained in a distant minimum in the total allocation of different resources. In addition, the secondary financial tools in line with the shari'ah could not be enhanced in order to give way to a viable Islamic Capital market (Choudhury, 2001).  The financial instruments of the Islamic banking are mostly traded in conventional or traditional stock markets. In this regard, neither the developmental factors of Islamic banking in line with realization of Islamic economy nor the distributive objectives for the marginal and poor business can be achieved. It is noted that one of the most competitive Islamic banks is the Bank Islam Malaysia Berhad, which quotes the following proportions of their Musharakah and Mudarabah funds (BIMB, 1994).  The Mudarabah financing have stood at 0.21% of the total financing in year 1993 and generates 0.34% on the following year.  On one hand, their Musharakah financing have been able to generate 1.85% and 1.81%, respectively, for the 1993-1994. Such funds which are held by shareholders have not able to consider any active stakeholding as well as participation in terms of decision making process except for their major shareholders.  The Islam Malaysia Berhad acted as the management in behalf of their clients to make all decisions singly. Hence, a principal-agent relationship emerged in decision making process and financial management.  Both funds have become sleeping partners in gaining financial contracts among their customers as well as the banking institution (Choudhury, 2001). In line with the Al-Rajhi banking as well as the Investment Corporate in Kingdom of Saudi Arabia, the banking and financial services have demonstrated good share values in its different Islamic financial instruments. Such is shown by their appreciating unit values. As can be seen in Table 1, unit shares of all funds have increased in the span of a mere 7 days. Yet the situation behind all such instruments is the nature of fixed deposit without dividends permitted to be withdrawn in the short-term. 	 		 		 		Table 1: 		Al-Rajhi Islamic banking services: current unit price    		 	 	 		 		 		Dated 		4/22/01 internet version 	 	 		 		 		Name of Fund   		                                    Unit Price                		Unit Price 	 	 		 		 		 		                                                            (This 		Week)              (Last Week) 	 	 		 		 		Commodity 		Mudarabah Fund                 $1,580.73                     		$1,579.31 	 	 		 		 		Local Shares 		Fund                             SR3,651.81                  SR3,636.02 	 	 		 		 		Global 		Equity Fund                             $139.98                         		$138.37 	 	 		 		 		Fund for 		Egyptian Shares                        $55.60                          		$53.65 	 	 		 		 		Middle East 		Equity Fund                   $92.69                          $91.08 	 	 		 		 		Balanced 		Fund - 1                                $1.1129                         		$1.1079 	 In first quarter of 2001, the Al-Rajhi Islamic banking service has posted 17.5% increase in their profits over the first quarter of 2000.  Herein, it shows that the equity shareholders’ capital have risen by 8% to Saudi Riyals 7 billion. The deposits of their clients also rose to SAR 37 billion and their operating revenue have reached SAR 904 million.    This banking institution has much of its Islamic funds in fixed deposits which revolved around various kinds of Islamic financial instruments. Fixed deposits although noted to be good for affluent investors who are not in need to cash off in the short-run, are noted to be conducive for the marginal depositors and enterprises.  Financial exigencies and needs influence marginal customers continuously over the short-run specifically in financial markets as well as economy which have become volatile in this generation. Thus, a good degree must be accessible to marginal investors and depositors upon their demand. The cashing off flexibility to depositors should mark the feature of the funds. Such would generate one of the conditions of shari'ah that is easy access to property rights, by the demanding depositors. It is also noted that some of the unit values are peak and may preclude small-scale investors from enjoying the aspects of financial tools. It might be good to consider of diversifying huge unit value shares into shares of those smaller unit values with affordable unit values. The outcome would be both risk diversification and product without diminution in the total unit value of shares.  A good field to change the shares is unit trusts with sectoral diversification. The associations between sectors can then be made through the Islamic financing tools as a sign of economic development.             In recent years, the same structure of Islamic bank financing focused in foreign and international trade has continued, for this tools was known to be most profitable and appealing from its low risk of standpoints. International trade finances compose 72% of total financing of Islamic Development Bank (IDB) on a cumulative aspects between the year 1976 and 1995. In this regard, much was on short-term trade financing. On the other hand, long-term trade financing composes a mere 2.87% of total international trade financing between year 1976 and 1995. Whereas, international trade financing instrument is not of an improvement and developmental kind. Dependence upon imported products from non-Muslim nations can enhance the debts of importing nations. Such issue was in fact shown with the international trade portfolio of IDB during the 1980s. Regardless, of the concentration of IDB financing in international trade, inter-communal trade among the member nations is a mere 9-10% of their global trade since it has begun. Member nations’ global share of trade was a mere 7% in 1995. Over 2 decades, 1973-1996, IDB had financed only three profit-sharing projects. Financing in these encompasses only 0.15% of total project financing (Islamic Development Bank, 1996). Recently, Islamic Development Bank generated a number of cooperative projects with Islamic banking and finance.  The existing Islamic Bank’s Portfolio for investment and Development is a fund jointly founded by the Islamic Banks and IDB along with other delegates.  Between 1988 and 1996 a total of US$100 million was provided in syndicated operations. Islamic Development Bank’s participation was 24.5%. The portfolio of Islamic bank’s composed 8.7%. Islamic Development Bank’s Unit Investment Fund composes of 5.8%. Pension Funds composes 3.5% and other Islamic Banks have reached 57.5% of their assets in this portfolio. These syndicated operations have been opened up in only two nations. Egypt and Pakistan, and then too they contain only lease and trade financing operations. It only consists 5.5% of total IDB financing between 1976-1995. The representation in Islamic Bank’s portfolio is of a mudarib kind, whereby Islamic Development Bank acts as the leader of the Islamic banks' portfolio. Chapter 3 Research Methodology   3.1 Research Approach               The study combines qualitative and quantitative approach. The qualitative approach is used to derive accounts and/or descriptions from people that can provide first hand information on the situation or phenomenon being studied (Saunders et al. 2003). The purpose of this approach is to draw in-depth information on a particular phenomenon to derive explanations, interpretations, and generalisations. The study uses qualitative approach to derive accounts and/or descriptions from banking experts. The quantitative approach is used to draw measurable or quantifiable information on the phenomenon subject of the study (Saunders et al. 2003). This reason for gathering measurable data is to determine the relationship between or among variables through descriptive statistics (i.e. frequencies and comparative data) expressed in the tables and graphs. In the study, quantifiable data is collected to determine the reasons for Islamic Banking growth. This research will be based on real-practices information available in the financial market; in relevant to Islamic financial institutions within the Middle East financial markets. 3.2 Data Collection Method             To be able to gather pertinent data and to achieve the objectives of the study, primary data and secondary data will be used. 3.2.1 Primary Research Primary research will be performed based on: ·         Interviews with CFO’s and executives of Islamic and conventional banks’. ·         Research and questionnaire with industry experts. ·         Research and questionnaire with investors/business owners 3.2.2 Secondary Research Secondary research will be performed on the basis of ·         Data available within the Islamic and Conventional bank’s annual reports, websites and marketing materials. ·         Data available through international organizations and big four annual industry review reports.     The secondary sources of data will come from the company’s annual report, published articles, business journals, research papers, and related studies on banking and financial industries, specifically Islamic Banking. On the other hand, primary research involved using the survey strategy, which allowed the gathering of a large amount of data from a sizeable population in an economic way (Saunders et al. 2003). The interview method provides a means of collecting insights or descriptions of experiences of the respondents on a given phenomenon or situation with answers expressed in words and analysed to derive insight and meaning (Saunders et al. 2003).   3.3 Sample Participants   The population for this study will be composed of managers, CFOs, banking experts and business owners. To make sure that the sample for this study is representative of the population, the researcher will conduct a random sampling. The sample will be composed of 50 respondents. 3.4 Survey/Questionnaire               The survey method applied in collecting primary data. Survey comprises a descriptive and non-experimental data collection method intended to draw information from a large sample. The survey method allowed the investigation to derive precise and impartial data to support conclusions and generalisations. This applies in studies requiring the determination and investigation of links or relationships between or among variables (Saunders et al. 2003).              However, there are advantages and disadvantages in using the survey method so that, the disadvantages should be addressed to justify the method and ensure the reliability and validity of the data collection process. An advantage is the ability to establish a relationship among variables but a concurrent disadvantage is the failure of the method to indicate the direction of the relationship (Salant & Dillman 1994). In the current study, combining the quantitative and qualitative approaches led to the determination not only of the existence of a relationship but also the direction of the relationship and the explanation for this. Another advantage is the ability of the survey to draw data from many respondents but a related disadvantage is the heavy reliance of the method on self-reported data (Salant & Dillman 1994) by the respondents making it imperative for the researcher to apply ways of ensuring the willingness of the respondents to participate and freely share information to support research validity. In the study, respondents were contacted beforehand to seek their willingness to cooperate in the data collection process by explaining to them the purpose of the study and the need for their participation in the data collection process to ensure that answers given can validly support conclusions. In addition, combining survey with interview method also allows the company to derive explanations for answers. Still another advantage is the ability of the data collection method to derive a wide range of experiences and opinions on the subject of the study but this also involves the concurrent disadvantage of requiring a tedious process (Salant & Dillman 1994). The current study worked through a timetable that allotted sufficient time for data collection especially because of the need to draw willing respondents and wait for replies to the questionnaire. The survey used a questionnaire, as shown below, composed of two parts. The first part of questionnaire contained demographic information while the second part involved the survey proper. The questionnaire was administered to the chosen respondents. In addition, another primary data collection method is interview with selected survey respondents conducted to derive insight on the responses. The data collection instrument will be a structured questionnaire that would be based on Likert scale. A Likert Scale is a rating scale that requires the subject to indicate his or her degree of agreement or disagreement with a statement. By rating scale we mean the scales that are usually used to measure attitudes towards an object, the degree to which an object contains a particular attribute, (Like or dislike), toward some attribute, or the importance attached to an attribute. The equivalent weights for the answers would be: Range                                    Interpretation 4.50 – 5.00                            Strongly Agree 3.50 – 4.00                            Agree 2.50 – 3.49                            Uncertain 1.50 – 2.49                            Disagree 0.00 – 1.49                            Strongly Disagree The use of the questionnaire would provide the project owner the ability to test the views and attitudes of the respondents. The distribution and collation methods used to manage the questionnaire process would ensure anonymity. For validation purposes, the researcher will initially submit a sample of the set of survey questionnaires for approval; the survey will be initially conducted to five respondents.  After the questions are answered, the researcher will ask the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument.  The researcher will again examine the content of the survey questions/statements to find out the reliability of the instrument. Afterwards, the researchers will exclude irrelevant questions and changed words that would be deemed difficult by the respondents, too much simpler terms. The researcher will exclude the five respondents who will be initially used for the validation of the instrument. The researcher will then tallies score and tabulate all the responses in the provided questionnaire. 3.4 Ethical Considerations               The ethical considerations arising in the investigation covers the consent of the respondents to the data collection process and the confidentiality of the information given by the respondents. This could raise concerns on the part of the respondents. In order to allay this concern, the questionnaire includes a letter explaining how their information was obtained, the extent of information obtained on them, the researcher, the purpose of the study, the participation expected from them, and an assurance that personal information obtained would be kept in confidence and used only for the purposes of the study. Answering and mailing back the questionnaires indicates consent and voluntary participation to the data collection process. In addition, protecting the confidentiality of identities of the respondents and the information given would also be assured the respondents during the interview process. These steps are necessary to ensure that the respondents knowingly and willingly extend their cooperation and participation to the research process.  3.5 Data Processing               The method of data analysis for the qualitative data is deriving and interpreting meaning and deriving implications in relation to the aim and objectives of the study. Results and analysis are presented in text discussions and graphs or charts to facilitate readability. In relation to the quantitative data, correlation analysis determines the existence of a relationship between the dependent and the various independent variables.   3.6 Statistical Treatment of the Data   After the collection of information from self-administered questionnaire, and related studies, the researcher collated all the data.  The statistical analysis for the information from semi-structure questionnaire was conducted using Microsoft Excel where the data is tabulated, graphed, and evaluated.  The testing of the level of significance was conducted using the Statistical Package for Social Sciences (SPSS) and tabulated in the Excel files.  The SPSS is the standard software in conducting statistical analysis. Percentage – to determine the magnitude of the responses to the questionnaire:                                                             Where:  n = number of responses                                                                           N = total number of respondents Weighted Mean:                                                 where: f – weight given to each response                                                              x – number of responses                                                              xt – total number of responses   To evaluate the information gathered, the percentage analysis and mean analysis are used.   Chapter 4 Data Analysis and Presentation     4.0   Introduction   Upon completion of the data gathering activity, the respondents who passed the consistency measures of the researcher totaled to 50 accomplished survey questionnaires. All these participants were included in the data presentation and analysis in the hope of attaining the goals and objectives of this particular research project. The following discussions constitute the accumulated information for this research study which includes the descriptive results and analysis of the answers of the respondents. Since presentation of the results of the study show no significant value in using the five degree Likert Scale denominations (5 Strongly Agree, 4 Agree, 3 Uncertain, 2 Disagree, 1 Strongly Disagree), the researcher decided to classify the answers of the respondents into three categories (3 Agree, 2 Uncertain, 1 Disagree) to collapse the data instead of using the five-level degree of measurement to provide comprehensive information that were elicited from the survey participants.   4.1   Demographic characteristics of the respondents   In order to have a general idea on the general social and economic characteristics of the respondents, the data and discussion provided in this section of the results and findings of the study presents the details of the overall description of the sample population. Age. In terms of age, almost three-fourths of the total number (78%) of respondents comprises the adult group categorization (30 – 59 yrs. old) while the age of the remaining participants compose the respondents who are below 20 years old (4%), and 20 to 29 years old (18%). It could be inferred that most of the respondents from Islamic Banking are people in their mid-life who have already established their careers and are probably earning for the daily needs of their families. A more graphic illustration of the respondents’ age distribution is detailed in the pie chart below. Figure 2 Gender: The data also indicated that more than half of the respondents (66%) are female while the remaining participants in the research activity are male (34%). It could be inferred that the job nature in ISLAMIC BANKING SECTORS provides career opportunities to competitive individuals regardless of their gender since their findings states that the gap and the sample population difference between the number of male and female respondents is negligible. Figure 3 below illustrates the specific results of the research study in terms of the gender of the respondents.  Figure 3   Civil status. Meanwhile, the largest portion of the respondents (64%) indicated that they are married followed by those who are single (20%), thus supporting the inference in Figure 1 regarding their familial responsibilities. Respondents who claimed that they are separated comprises of 4% out of 50 respondents and widows/widowers (12%). From these research results, it is evident that three-fourths of the respondents (84%) attend to and meet the needs of their immediate family members. See Figure 5 below for the details of the research findings on the participants’ claimed civil status.   Figure 5   Years of employment in the company  The largest portion of the total number of respondents (50%) stated that they have below five years of working experience in ISLAMIC BANKING SECTORS followed by the respondents who have gained six to ten years of career experience (36%) in the company. It is remarkable to note however, that there are 14% of the respondents who have at least 11 years of work dedicated to the organization. These findings are clear indication that the company has interesting strategies of minimizing the turnover of the respondents and provides good opportunities to company members who have relatively lesser experience in the company operations. Details of these findings are illustrated in Figure 6 below.   Figure 6 Years of Employment in Islamic Banking Sectors   4.2   Perception of Respondents               The proceeding sections will present the results in accordance to the Likert technique. It will be remembered that the respondents of the study were presented a set of attitude statements so they can express their agreement or disagreement with the use of a seven-point scale, wherein 5 is equivalent to an answer that merits a strong agreement and 1 as showing a strong disagreement (see chapter 3). This will provide a greater understanding about the observations of the following respondents towards the strategies used by ISLAMIC BANKING to outgrow its rival companies.   	<li class="MsoNormal" style="color: black; line-height: 200%"> 	The Perception of Respondents 	about the Business strategy of ISLAMIC BANKING </li> Table 1 Strategy of ISLAMIC BANKING   	 		 			 			 			 			Statements 			 			 			5 			 			 			4 			 			 			3 			 			 			2 			 			 			1 			 			 			 			Weighted Mean 			 			 			 			Interpretation 		 		 			 			 			1. With 			respect to growth of ISLAMIC BANKING, one of the reasons is their 			ability to initiate efficient and effective strategy to meet the 			needs of the respondents and customers 			 			 			33 			 			 			17 			 			 			0 			 			 			0 			 			 			0 			 			 			4.66 			 			 			 			Strongly Agree 		 		 			 			 			2. Staff 			or respondents understand the mission, vision, and goal of the 			Islamic Banks to achieve growth. 			 			 			25 			 			 			23 			 			 			2 			 			 			0 			 			 			0 			 			 			4.46 			 			 			Agree 		 		 			 			 			3. The 			organization adopts an employee and customer-focused strategy to 			satisfy the needs of the respondents and customers 			 			 			31 			 			 			19 			 			 			0 			 			 			0 			 			 			0 			 			 			4.62 			 			 			 			Strongly Agree 		 		 			 			 			4. The 			organization handles employee and customer relations effectively 			 			 			29 			 			 			21 			 			 			0 			 			 			0 			 			 			0 			 			 			4.58 			 			 			 			Strongly Agree 		 		 			 			 			5. With 			the help of the current management strategy, ISLAMIC BANKING enables 			to understand and reach out to the needs of its customers in 			providing quality insurance and financial services. 			 			 			35 			 			 			14 			 			 			1 			 			 			0 			 			 			0 			 			 			4.68 			 			 			 			Strongly Agree 		 		 			 			 			6. The 			management address the need to cope with different management 			strategy development. 			 			 			37 			 			 			13 			 			 			0 			 			 			0 			 			 			0 			 			 			4.74 			 			 			 			Strongly Agree 		 		 			 			 			7. The 			management respond to the need to have qualified and competent 			personnel as part of the strategic management. 			 			 			33 			 			 			17 			 			 			0 			 			 			0 			 			 			0 			 			 			4.66 			 			 			 			Strongly Agree 		 		 			 			 			8. The 			management used efficient communication approach within the entire 			organization. 			 			 			25 			 			 			23 			 			 			2 			 			 			0 			 			 			0 			 			 			4.46 			 			 			Agree 		 		 			 			 			9. 			As part of ISLAMIC BANKING strategy, the company easily adapts to 			the new environment brought about by the implementation of 			e-commerce in most financial and insurance industries. 			 			 			31 			 			 			19 			 			 			0 			 			 			0 			 			 			0 			 			 			4.62 			 			 			 			Strongly Agree 		 		 			 			 			10. The current 			strategy is addressing the need to cope with technological changes 			 			 			35 			 			 			14 			 			 			1 			 			 			0 			 			 			0 			 			 			4.68 			 			 			 			Strongly Agree 		 		 			 			 			11. The company 			utilizes effective information technology and e-commerce as part of 			their management system. 			 			 			37 			 			 			13 			 			 			0 			 			 			0 			 			 			0 			 			 			4.74 			 			 			 			Strongly Agree 		 		 			 			 			12. The company has 			able to sustain its competitive advantages through its current 			business strategy. 			 			 			31 			 			 			19 			 			 			0 			 			 			0 			 			 			0 			 			 			4.62 			 			 			 			Strongly Agree 		 	   Table 1. The table above indicates the perceptions of the respondents pertaining to the management strategy of ISLAMIC BANKING . According to the chosen respondents, ISLAMIC BANKING has been able to initiate management strategy to be able to outgrow their rival companies. On this particular statement, the statistics shows the weighted mean of 4.66 and interpreted as strongly agree response. Majority of the respondents believed that management strategy of ISLAMIC BANKING   adheres to the needs and demands of their target market which was verified by weighted mean of 4.62.  Moreover, they claimed that the staffs and employees of the Islamic banking understand the mission, vision, and goal of their present organization. According to the surveyed individuals, the organisations adopt an employee consumer-focused model to cope up to the continuous change in the industry. Based on the analysis, it also shows that the employees of ISLAMIC BANKING strongly agreed that the company has been able to sustain its competitive position and advantage in the banking and insurance sectors because of its business strategy.   	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Determining the Perception of 	the Respondents Regarding the factors that affects the performance of 	ISLAMIC BANKING </li> Table 2 	 		 		 		 Statements 		 		 		5 		 		 		4 		 		 		3 		 		 		2 		 		 		1 		 		 		Weighted Mean 		 		 		Interpretation 	 	 		 		 		1.  The status of politics 		and religious aspects of affects the progress of ISLAMIC BANKING 		 		 		29 		 		 		21 		 		 		0 		 		 		0 		 		 		0 		 		 		4.58 		 		 		Strongly 		Agree 	 	 		 		 		2. Issues in technology 		and innovation predict the future of ISLAMIC BANKING in providing 		banking and financial service. 		 		 		35 		 		 		14 		 		 		1 		 		 		0 		 		 		0 		 		 		4.68 		 		 		Strongly 		Agree 	 	 		 		 		3. The buying behaviour of 		consumer affects the success of ISLAMIC BANKING 		 		 		37 		 		 		13 		 		 		0 		 		 		0 		 		 		0 		 		 		4.74 		 		 		Strongly 		Agree 	 	 		 		 		4 		The current economic status of Islamic and non-Islamic nations affects 		the performance of ISLAMIC BANKING. 		 		 		33 		 		 		17 		 		 		0 		 		 		0 		 		 		0 		 		 		4.66 		 		 		Strongly 		Agree 	 	 		 		 		5. The innovation 		strategies of other Banking and financial industries affect the overall 		performance of ISLAMIC BANKING. 		 		 		35 		 		 		14 		 		 		1 		 		 		0 		 		 		0 		 		 		4.68 		 		 		Strongly 		Agree 	   Table 2 provides the result on the perception of the respondents regarding factors that affects the performance of ISLAMIC BANKING. The findings shows that majority of respondents strongly agreed on the given statements. It shows that the respondents strongly agreed that the status of politics  affects the progress of ISLAMIC BANKING.   Furthermore, the respondents strongly agreed that buying behavior of the consumer influences the success or the performance of ISLAMIC BANKING market. The participants also strongly agreed that issues in technology and innovation, economic status and the innovation strategies of other banking and insurance industries predict the future of ISLAMIC BANKING business in terms of providing banking and insurance services. With this result it can be argued that the respondents are aware of the factors s which can affect the organizational performance of ISLAMIC BANKING.   3. Core Competencies of ISLAMIC BANKING as perceived by the Respondents             A core competence is a well-performed internal capability that is central, not peripheral, to a company's strategy, competitiveness, and profitability. The best-known explanation of core competence is provided by Prahalad and Hamel (1990): " core competencies are the collective learning of the organization, especially how to co-ordinate diverse production skills and integrate multiple streams of technologies". Based on the answers provided by the respondents, the following are the summarized core competencies of (ISLAMIC BANKING).             Company Management. Being able to know and implement an efficient business strategy, this has given the company many advantages. The respondents perceived that the company management allows the ease in monitoring the company’s core activities.  In addition, the employees also mentioned that the company has given them significant role and contribution to the company, which in turn allows them to be motivated. In addition, the respondents also perceived that the company management of ISLAMIC BANKING has divided its core activities into appropriate sections, allowing smoother flow of operations. Compared to other banking and insurance companies, the compactness of ISLAMIC BANKING allowed it to establish a corporate culture that has not only benefited its overall operations but its standing in the market as well.             Customer Service. According to the participants of the study, ISLAMIC BANKING   was able to maintain a strong relation with its customers. Through its efficient service and quality products, the market had recognized the ability of the company to satisfy consumer needs. Moreover, this suggests the core values of the company. The employees of ISLAMIC BANKING  mentioned that the company is not solely after profit generation and market growth. It also prioritizes its customers, which in turn helps in building a stronger market. This corporate value makes ISLAMIC BANKING distinct form other similar businesses.             Products and service Design. One of the factors that make ISLAMIC BANKING different forms other similar companies that are its ability to produce products and services based on their own designs. It’s the efficient staffs of the ISLAMIC BANKING  enables the company to produce products and insurance services that are new to the market, leading to higher market interest. Instead of just assembling materials to form the product, the company creates its own product and service design as well. The distinct design of the company makes its products to stand out from others.             Corporate Culture.   Another core competency that has been mentioned by the respondents includes the ISLAMIC BANKING’s corporate culture and effective management. In common terms, organizational culture is defined as the manner in which things are accomplished. According to Cummings and Worley (2001), organizational culture involves the sharing of learning. Sharing of thoughts and experiences with others implies that organizational culture promotes a certain level of stability among the members of the organization. The corporate culture of ISLAMIC BANKING allows the company to achieve its goals and perform based on set standards. The efficiency of the company’s customer service enables it to create stronger customer relations which in turn will be useful during new product launches and company offers. The relation of the company with its customer however, can be enhanced further by implementing new methodologies.             Efficient use of information Technology. The ability of being an innovative industry of ISLAMIC BANKING is mainly because of their competencies and capabilities. According to the respondents, a recognized source of the competitive advantage of ISLAMIC BANKING , both in the domestic and international level has been its core competencies. It is said that the IT related core competency of ISLAMIC BANKING is the integration of ISLAMIC BANKING’s business strategies with information technology through the use of internet. The company has its own website to reach more customers all over the world. In addition, the company used Information communication technology to identify the needs and demands of their target market.   Chapter 5 Summary, Conclusions and Recommendations   5.0 Summary Banking and financial industries are now facing crisis from all over the world. However, there are still industries that are able to remain competitive and still sustain their growth and development and one of these is the Islamic Banking sectors. Primarily, the main goal of this research study is to analyze the reasons for the growth and development of Islamic Banking sectors.  These industries have been able to remain competitive in the banking and insurance industries. Furthermore, the aim is to determine the factors that affect overall performance of the industry and to know the core competencies of ISLAMIC BANKING. To achieve the objective of the study, the researcher have used descriptive approach and gathered pertinent data from 50 respondents of ISLAMIC BANKING through its self-administered survey-questionnaires. Base on the data gathered and analysed, it has been found the company uses effective management strategy. Most of the respondents have strongly agreed that strategies of ISLAMIC BANKING have been important in meeting the needs and demands of their target market, which results to having a competitive advantage mong their rival companies. The study also shows that the effective management strategy allows the company to outgrow their rival companies in banking and insurance industries. Effective management practices provide the firm with highly motivated and productive employees that works on meeting the needs and demands of their clients. By paying attention to customer wants and needs, organizations are more likely to achieve their objectives in the marketplace. Customers are the ones benefited by the management of ISLAMIC BANKING . By giving clients what they want they tend to be more willing to purchase a company’s products than its competitors. In customer service their can be different requirements for different place and different situations. The result of the study shows that the effective strategies initiated by ISLAMIC BANKING have been able to meet the organizational goal of improving and enhancing the performance of the employees but also the performance of the organization as well in meeting the needs of the customers. In addition, the result also shows that as perceived by respondents, the marketing strategies enhances the market capabilities of ISLAMIC BANKING  to be more motivated and productive in providing quality products and services that will be offered to the target market. Effective strategies functions as a company’s basis to achieve competent organizational performance. In addition, the study also revealed that as perceived by the respondents  the factors that affects the performance of the company includes the political status of , technology and innovation, buying behavior of consumers, current economic status of  and the innovation strategies of other banking and insurance industries. As mentioned, one of the aims of this research is to identify the core competencies of ISLAMIC BANKING. The gathered data revealed that the core competencies of ISLAMIC BANKING  includes company management, products and service design, corporate culture and their efficient use of information Technology.   5.1 Conclusion At present, businesses are becoming more focused on different aspects that influence their organizational performance and competitive position in the marketplace. Although, competition in banking and insurance industry is tough, it can be said that ISLAMIC BANKING is still able to compete well because of their effective management strategies as well as their Islamic rules and policies, their ability to cope with different factors that affects the business as well as their core competencies.             Through this study, it can be perceived that the success of an organization may depend on the strategies implemented by the management of the company. Being able to identify these factors is important so that other companies will likely to find strategic ways to stay in the competitive market.             The dissertation revealed that these factors benefit the organization, the group, and the individual. Accordingly, the context of these factors is about enhancing employee skills to do their tasks well and to be able to contribute to the success of the organisation. It can be said that these factors has been useful in identifying the preferences of their market and this has helped them in enhancing the potentials of their organisational performance and core competencies to its maximum level. It can be said that the ISLAMIC BANKING   has been able to use effective strategy to compete well in the marketplace. The assessment of the strategies used by the company provides a constructive impact on organisational culture, organisational development, and bottom line. Through this, the employees has been able to see that the ISLAMIC BANKING  is geared towards ensuring that organisational goal will be achieved through different business activities and practices initiated. Based from the research questions developed for this research, a number of important findings were drawn. With regards to the components of the factors that influence ISLAMIC BANKING, the company has been able to value their employees and considers essential activities such as capabilities, technology, and innovation. 5.2   Recommendation Effective business practices are essential elements for the success of all businesses. Through these, companies are able to distribute and promote their products and services to retailers and consumers. In this research paper, it becomes apparent that management strategy is among the key factors for businesses to succeed and meet the organisational goals. From this discussion, several important points had been suggested. For instance, this research has implied the value of choosing the most applicable and effective management strategy which will enable them to meet and the needs of the customers. Sufficient time should be allotted by the company in order to develop effective strategy plans. In addition, time is also necessary during the implementation process. Skills or expertise is also an important element in implementing business strategies, specifically leadership and communication skills. According to Thompson and Strickland (2003), strategies tend to evolve constantly. As businesses encounter different pressures and environmental factor over time, their respective managements must create strategies that are appropriate to their current situation. Some of the factors that encourage constant strategic changes include the identification of new business threats or opportunities, technological advancements, emergence of new purchasing trends and requirements, competitive conditions and initiatives to increase market share. Strategic reforms and business changes actually share a directly proportional relation; as changes and adaptations in business increases, the need for strategic reforms also increases. Business strategies must evolve in order to let companies overcome the challenges that they encounter. In this discussion, much focuses where given on how these strategies help the company to outgrow its rival industries. However, it is also necessary to point out that monitoring the progress or effects of these strategies are also prioritized. Monitoring systems or procedures should be developed by companies along with the implementation plans of the chosen business strategies. This is an important additional process to strategy implementation as it leads to several other benefits. After citing all these other important needs, perhaps the most important learning from this research is that implementing business strategies, be its customer-oriented or not, is not a standard matter. Each business is operating in an environment that is different from others. This means, businesses are subjected to unique internal and external factors, which should be considered in strategy implementation. Hence, rather than follow the implementation practice of major and successful corporations, it is more recommendable to take an individualized or customized approach in implementing business strategies. In this way, greater control can be obtained. In this regard, the management of the company must have the ability to strategically decide the most essential external environment factors to be monitored in order to sustain competitive advantage.            5.3 Future Research Directions The study conducted for the ISLAMIC BANKING   can be enhanced further through the following future research recommendations: 1.    Future researchers using a similar topic may consider the use of a larger sample instead of just using 50 respondents or customers of the company. This could be helpful in making the findings more applicable in general. 2.    Other methods of research and data-gathering such as meta-analysis or correlation may be used in the future to determine the connection between management strategy and competitive advantage.     6.0  References and bibliography     Abdullah, M. “Contemporary banking transactions and Islam's views thereon”, Islamic Review, London, 2006, l0-l6.   Boxall, P. and Purcell, J. (2000). Strategic Human Resource Management: Where have            we come from and where should we be going. International Journal of Management Review, 2 (2): 183-185   Bruce, N.C., “Islamic banking moves east”, Euromoney, July: 2001, 142-5.     Campbell, D. (2002). Campbell Leadership Descriptor: Facilitator's Guide and Participant workbook. Jossey-Bass: San Francisco.   Choudhury, M.A. 2001. "Venture capital in Islam: a critical examination", Journal of Economic Studies, Vol. 28:1 Creswell, J.W. (1994) Research design. Qualitative and quantitative approaches. Thousand Oaks, California: Sage.   Cooper, D.R. & Schindler, P.S. (1998). Business Research Methods. 6th Edition. Boston, MA: Irwin McGraw Hill.   David, F.R. (1999). Strategic Management, Concepts and Cases.  3rd ed. Saddle, River, NJ: Prentice-Hall, Inc.   David, F.R. (2001). Strategic Management: Concepts and Cases. 8th ed. Upper Saddle River, NJ: Prentice Hall, Inc.   Drejer, A. (2002).  Strategic Management and Core Competencies: Theory and     Application. Westport, CT: Quorum Books.   Gafoor, AA (1995). “Islamic Banking”. Online available at http://users.bart.nl/~abdul/chap4.html. Retrieve February 4, 2008.   HSBC Amanah (2009). Islamic Banking Industry. Online available at http://www.hsbcamanah.com/1/2/hsbc-amanah/about-islamic-banking/the-industry. Retrieve February 4, 2008.   Islamic Development Bank, 1996. Annual Report, Jeddah, Saudi Arabia: IDB. Hitt, M.A., Ireland, R.D. and Hoskisson, R.E. (2003), Strategic Management, Competitiveness and Globalization.  5th Edition. Thomson, Southwestern.   Karsten, I., “Islam and financial intermediation”, IMF Staff Papers, March, 29(1): 2002, 108-42.   Kealey, D.J., & Protheroe, D.R. (1996). The effectiveness of cross-cultural training for expatriates: An assessment of the literature on the issue. In International Journal of Intercultural Relations, Vol. 20 No. 2, pp. 141-165.   Kolb, D.A. (1984), Organizational psychology: An experiential approach (2nd ed.). Englewood Cliffs, NJ: Prentice-Hall   Matveev, A.V. (2002). The Advantages Of Employing Quantitative And Qualitative Methods In Intercultural Research: Practical Implications From The Study Of The Perceptions Of Intercultural Communication     Competence By American And Russian Managers. New York: Russian Communication Association.   Meyer, D.G., Powell, K.S., and Tucker, M.L. (1995). Qualitative Research in Business Communication: A Review and Analysis. The Journal of Business Communication. Volume: 32. Issue: 4, p. 383.   Naughton, S.A.J. “Islamic banking and financial development”, Journal of Islamic Banking and Finance, 1999, 5 (2).   Pearce, J.A. and Robinson, R.B. (2000). Strategic Management: Formulation,       Implementation and Control. Boston: Irwin/McGraw Hill.   Siegel, G.B. (1992). Public Employee Compensation and its Role in Public Sector           Strategic Management. London, Quorum Books.   Sims, R.R. (1983), Assessing competencies in experiential learning theory: A person job congruency model of effectiveness in professional careers. Unpublished doctoral dissertation, Case Western Reserve University, Cleveland.     Thompson, A.A. and Strickland, A.J. (2003). Strategic Management: Concepts and Cases. 13th ed. New York: McGraw Hill.   7.0 Appendices Survey Questionnaire               The researcher is conducting an evaluation of reasons of the growth of Islamic Banking American.  To enable the researcher to make the necessary conclusions and recommendations for this study, it would be very much appreciated if you answer all the items in the questionnaire.             Information given will be treated in strictest confidence.                                                                                                 Thank you.                                     Part 1. Demographic Profile of Respondent   Direction: Please fill up in all the necessary information about yourself. Don’t leave any item unanswered.   a.            Age Below 20 ( )   20 – 25 ( )      26 – 30 ( )      31 – 35 ( )      36 – 40 ( )      41 above ( )   b.            Gender Male ( )           Female ( ) c.            Civil Status Single ( )        Married ( )      Separated ( )             Widow/Widower ( ) d.            How long have you been working for Unisys Corporation? Less than 1 year ( )  1-2 years ( )   3-4 years ( )   5-6 years ( ) 7-8 years ( )   9-10 years ( )             more than 10 years ( )   Part 2: The Perception of the Respondents Direction:       Check the number corresponding to your answer                           5          -           Strongly Disagree                         4          -           Disagree                         3          -           Uncertain                         2          -           Agree                         1          -           Strongly Agree             1. What are the reasons for the growth of Islamic Banking? 	 		 		 		 		Statements 		 		 		5 		 		 		4 		 		 		3 		 		 		2 		 		 		1 	 	 		 		 		1. With 		respect to growth of ISLAMIC BANKING, one of the reasons is their 		ability to initiate efficient and effective strategy to meet the needs 		of the respondents and customers 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		2. Staff or 		respondents understand the mission, vision, and goal of the Islamic 		Banks to achieve growth. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		3. The 		organisation adopts an employee and customer-focused strategy to satisfy 		the needs of the respondents and customers 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		4. The 		organisation handles employee and customer relations effectively 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		5. With the 		help of the current management strategy, ISLAMIC BANKING enables to 		understand and reach out to the needs of its customers in providing 		quality insurance and financial services. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		6. The 		management address the need to cope with different management strategy 		development. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		7. The 		management respond to the need to have qualified and competent personnel 		as part of the strategic management. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		8. The 		management used efficient communication approach within the entire 		organisation. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		9. 		As part of ISLAMIC BANKING strategy, the company easily adapts to the 		new environment brought about by the implementation of e-commerce in 		most financial and insurance industries. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		10. The current strategy 		is addressing the need to cope with technological changes 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		11. The company utilises 		effective information technology and e-commerce as part of their 		management system. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		12. The company has able 		to sustain its competitive advantages through its current business 		strategy. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	     	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	What are the factors that 	affect the performance of ISLAMIC BANKING?</li> Table 2 	 		 		 		 Statements 		 		 		5 		 		 		4 		 		 		3 		 		 		2 		 		 		1 	 	 		 		 		1.  The status of politics 		and religious aspects of affects the progress of ISLAMIC BANKING 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		2. Issues in technology 		and innovation predict the future of ISLAMIC BANKING in providing 		banking and financial service. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		3. The buying behaviour of 		consumer affects the success of ISLAMIC BANKING 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		4 		The current economic status of Islamic and non-Islamic nations affects 		the performance of ISLAMIC BANKING. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	 	 		 		 		5. The innovation 		strategies of other Banking and financial industries affect the overall 		performance of ISLAMIC BANKING. 		 		 		  		 		 		  		 		 		  		 		 		  		 		 		  	   	<li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> 	What are the Core 	Competencies of ISLAMIC BANKING?</li> ______________________________________________________________________________.

MBA Dissertation on Islamic banking :An analysis of the reasons for its growth in the Middle East during the last decade

MBA Program Dissertation Proposal Islamic banking An analysis of the reasons for its growth in the Middle East during the last decade …