eCite Digital Repository

What drives consumer choice of Islamic banking services in the United Arab Emirates?


Shome, A and Jabeen, F and Rajaguru, R, What drives consumer choice of Islamic banking services in the United Arab Emirates?, International Journal of Islamic and Middle Eastern Finance and Management, 11, (1) pp. 79-95. ISSN 1753-8394 (2018) [Refereed Article]

Copyright Statement

© Emerald Publishing Limited 2018

DOI: doi:10.1108/IMEFM-03-2017-0066


Purpose - Islamic banking (IB) has witnessed remarkable growth in the past decade. The purpose of this study is to explore some factors that are influencing the choice of Islamic banking and finance (IBF) products and services in the United Arab Emirates (UAE), a predominantly Muslim country.

Design/methodology/approach - Students enrolled at a university located in a major emirate in the UAE were asked to respond to a survey on factors underlying their decision to open an account at an Islamic bank. Responses were analyzed using descriptive statistics, analysis of variance and regression analysis.

Findings - Results indicate that the decision to open an account with an Islamic bank is influenced by consumer expectations regarding the conformity of the bank’s operations with Islamic principles, as well as consumers’ Arab language skills. Variables such as consumers’ nationality, gender, education and familiarity with IB do not have a significant influence on the decision to open an account at an Islamic bank.

Research limitations/implications - The study focuses on university students from a certain Emirate only, which somewhat limits the generalizability of the research results. Nevertheless, the findings of this study may potentially provide some practical insights for further improving and promoting IB, with special reference to the UAE youth market segment.

Originality/value - The research is original in nature, particularly as there have not been many instances where the choice of potential consumers (university students) regarding IB and finance services has been explored within the IB sector in a predominantly Muslim nation such as the UAE, an emerging Gulf economy. Consequently, the research findings have important implications for Islamic banks operating in a predominantly Islamic environment.

Item Details

Item Type:Refereed Article
Keywords:Islamic banking, consumer choice, banking services, United Arab Emirates, religious factors, secular factors, consumer attitudes and perceptions
Research Division:Commerce, Management, Tourism and Services
Research Group:Marketing
Research Field:Marketing not elsewhere classified
Objective Division:Culture and Society
Objective Group:Religion
Objective Field:Religious rituals and traditions (excl. structures)
UTAS Author:Rajaguru, R (Dr Rajesh Rajaguru)
ID Code:124010
Year Published:2018
Web of Science® Times Cited:23
Deposited By:TSBE
Deposited On:2018-02-06
Last Modified:2018-12-04

Repository Staff Only: item control page