Citation:

Mr. Hatem Ziyad AL Habali, Mr. Bakhtawar Durrani. "Financial Performance Metrics of Islamic Banks in the Sultanate of Oman: An Analytical Review" International Research Journal of Economics and Management Studies, Vol. 3, No. 6, pp. 12-21, 2024.

Abstract:

This study aims to provide an analytical review of the financial performance metrics of Islamic banks in the Sultanate of Oman, focusing on Bank Alizz and Bank Nizwa. Islamic banking, which operates in compliance with Sharia law, has emerged as a significant component of the global financial system. In Oman, Islamic banks have gained prominence for their role in promoting economic stability and growth. This paper evaluates the financial performance of these banks using key performance indicators such as profitability, liquidity, asset quality, and capital adequacy. The analysis draws on financial statements, annual reports, and other relevant financial data from 2019 to 2021. By comparing the performance of Bank Alizz and Bank Nizwa, the study highlights strengths and areas for improvement within the Omani Islamic banking sector. The findings indicate that while both banks demonstrate strong liquidity and capital adequacy, challenges remain in terms of profitability and asset quality. This review provides valuable insights for policymakers, investors, and stakeholders interested in the development of Islamic banking in Oman, offering recommendations to enhance financial performance and sustain growth in the sector.

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Keywords:

Financial Performance, Liquidity, Asset Quality.