IDEAS home Printed from https://ideas.repec.org/a/ids/ijaape/v21y2025i1-2p42-64.html
   My bibliography  Save this article

The impact of risk-taking on performance of Islamic and conventional banks in Qatar, Saudi Arabia and UAE

Author

Listed:
  • Henda Amri
  • Taher Hamza

Abstract

This paper investigates the effect of risk-taking on performance for Islamic and conventional banks in Qatar, Saudi Arabia and UAE during the period 2003-2014. First, our findings reveal a slight outperformance of Islamic banks compared to their conventional counterparts, especially during the subprime crisis. Second, Islamic banks exhibit lower credit, liquidity and idiosyncratic risks. However, conventional banks have the least average of systematic risk. Third, we underline a positive effect of capital adequacy on bank performance. Nonetheless, this performance is affected negatively by credit, idiosyncratic and systematic risks. Furthermore, the insolvency and liquidity risk have no significant impact on bank performance. Moreover, the findings show a positive effect of GDP per capita and of inflation but a negative effect of bank size on bank profitability. Finally, the results show that the subprime financial crisis did not significantly affect banks' performance in Qatar, Saudi Arabia and UAE.

Suggested Citation

  • Henda Amri & Taher Hamza, 2025. "The impact of risk-taking on performance of Islamic and conventional banks in Qatar, Saudi Arabia and UAE," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 21(1/2), pages 42-64.
    • Handle: RePEc:ids:ijaape:v:21:y:2025:i:1/2:p:42-64
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=144907
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijaape:v:21:y:2025:i:1/2:p:42-64. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=41 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.