Shome, Anamitra and Jabeen, Fauzia and Rajaguru, Rajesh,(2018), What drives consumer choice of Islamic banking services in the United Arab Emirates? , International Journal of Islamic and Middle Eastern Finance and Management, UNSPECIFIED
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Abstract
Purpose – Islamic banking (IB) has witnessed remarkable growth in the past decade. The purpose of this
study is to explore some factors that are influencing the choice of Islamic banking and finance (IBF) products
and services in the United Arab Emirates (UAE), a predominantly Muslim country.
Design/methodology/approach – Students enrolled at a university located in a major emirate in the
UAE were asked to respond to a survey on factors underlying their decision to open an account at an Islamic
bank. Responses were analyzed using descriptive statistics, analysis of variance and regression analysis.
Findings – Results indicate that the decision to open an account with an Islamic bank is influenced by
consumer expectations regarding the conformity of the bank’s operations with Islamic principles, as well as
consumers’ Arab language skills. Variables such as consumers’ nationality, gender, education and familiarity
with IB do not have a significant influence on the decision to open an account at an Islamic bank.
Research limitations/implications – The study focuses on university students from a certain Emirate
only, which somewhat limits the generalizability of the research results. Nevertheless, the findings of this
study may potentially provide some practical insights for further improving and promoting IB, with special
reference to the UAE youth market segment.
Originality/value – The research is original in nature, particularly as there have not been many instances
where the choice of potential consumers (university students) regarding IB and finance services has been
explored within the IB sector in a predominantly Muslim nation such as the UAE, an emerging Gulf economy.
Consequently, the research findings have important implications for Islamic banks operating in a
predominantly Islamic environment.
Keywords : | United Arab Emirates (UAE), Conventional banking, Consumer attitudes and perceptions, Islamic Banking (IB), Religious factors, Secular factors, UNSPECIFIED |
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Journal or Publication Title: | International Journal of Islamic and Middle Eastern Finance and Management |
Volume: | 11 |
Number: | 1 |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Nila Nurjanah |
Date Deposited: | 19 Dec 2019 04:38 |
Last Modified: | 27 Dec 2019 08:15 |
URI: | https://repofeb.undip.ac.id/id/eprint/387 |