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Abstract:
For the purpose of this paper and to reach on a solid conclusion, we studied all 21 locally incorporated conventional and Islamic banks in UAE. To assess and compare their performance, we referred to their financial data available on their official websites in the form of audited financial statements. Return on Equity (ROE) and Return on Assets (ROA) have been computed for these banks for the past 10 years, from 2006 to 2015 as indicators of their financial performances. We conclude that conventional banks have been earning higher returns on their assets and equities overall during the period between 2006 and 2015 except in pre-crisis period of 2006 and 2007. Also, we conclude that despite the higher growth rate in assets and size of Islamic banks globally, conventional banks in UAE have better financial performance than their Islamic counterparts during the last 10 years.
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