Evaluating Financial Performance of Islamic and Conventional Banks in UAE: A Comparative Study

The present research is an effort to analyze the Islamic and conventional banks “performance through ratios in UAE., covering the time period from 2011 to 2023. The data has been retrieved from BankFocus data base. The paper investigates the corollary of the ratios such as Capital Adequacy Ratio (CAR)., Total Assets (TA)., Loan to Deposit Ratio (LDR)., Cost to Income Ratio (CIR) and Net Interest Margin (NIM) on banks” (IBs & CBs) performance in terms of ROAA and ROAE. The panel data regression has been applied to obtain the desired outcomes. The findings indicate that CIR and NIM have both negative and positive impact on ROAA and ROAE of IBs in UAE. In addition., the panel results for CBs in UAE show a positive and significant impact of CAR and NIM on both ROAA and ROAE. In contrast T A and CIR show a significant negative effect in this context.