Resilience of Islamic banks in Yemen: an analysis of monetary and financial performance

Islamic banks in Yemen showed impressive financial growth from January to May 2024, with total assets increasing to YER12.23 trillion (US$6.41 billion), reflecting their strong asset management capabilities and growing trust from customers. Foreign assets also rose consistently, reaching YER3.88 trillion (US$2.03 billion), indicating sustained confidence from international investors in the stability of these banks. The expansion of loans and advances to YER1.99 trillion (US$1.04 billion) underscores the banks’ pivotal roles in supporting the private sector and fostering economic activity through Shariah-compliant financing solutions. Additionally, the steady growth in total deposits highlights the ability of the banks to attract and retain customer funds, while the significant increase in foreign currency deposits, which reached YER6.92 trillion (US$3.62 billion), emphasizes their strategic importance in maintaining financial stability and liquidity in the Yemeni banking sector