PRODUCTIVITY OF ISLAMIC BANKING SYSTEMS IN THE MIDDLE EAST

Abstract

As a result of the dramatic changes brought about by the linked world's financial environment, Islamic banking systems in the Middle East have been greatly affected. This extensive research study examines the complex connection between globalization and the productivity of Islamic financial institutions in a number of Middle Eastern nations. Islamic banks in the Middle East have faced new problems and possibilities brought about by globalization, which is defined by increased cross-border exchanges and market integration. It presents opportunities for new technical developments and broader access to markets, but it also brings new regulatory hurdles and intensified rivalry. Keeping up with the ever-changing global financial landscape requires Islamic banking institutions to deftly maneuver through these dynamics. Islamic banks in the area are impacted by the forces of globalization, such as trade liberalization, financial integration, and technology improvements. This research draws on a combination of empirical evidence and theoretical frameworks to explain how these factors impact their operating environment. Islamic financial institutions are seeing increases in productivity as a result of technological developments like digital banking solutions and fintech technologies, which improve operational productivity and the client experience.