The Perception of People toward Interest Free Islamic Banking Products and Services: In the Case of Dire Dawa City

The emergence of Interest Free banking system has created a new dimension to the current economic models and financial developments. Hence, use of such innovations is highly appreciated even if its implementation depends on the customers intentions. The main objective of this study is to explore the perceptions of people towards Interest Free Banking products and services in the case of Dire Dawa city. A descriptive research designs were used to quench the objectives of the study. A qualitative research approach methods via cross-sectional survey was employed. 400 people were taken through stratified random sampling technique as study respondents to collect questionnaire among different religions. For the purpose of data collection, the researcher used closed-ended questionnaires. And for the analysis, chi-square test and spearman’s rho Correlation Coefficient was adopted to analyze the results. The descriptive statistics result revealed that there is significant perception difference between Muslims and non-Muslims towards interest free banking products and services. Therefore, banks should give due attention towards their marketing strategies and campaign for products of interest free banking and its principles.