Impact of a five-dimensional development framework in overcoming Internal and external constraints of Islamic banks


October 1, 2019
Impact of a five-dimensional development framework in overcoming Internal and external constraints of Islamic banks
Nafith Fayez Ahmad Alhersh

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Issue

Islamic banks faced real obstacles and challenges in the internal and external fields after becoming an important player in the global economy, especially after the global financial crisis and the consequent effects on the world’s economies. The research presented a new model for the development of Islamic banks based on five dimensions linked directly with these obstacles facing Islamic banking. These obstacles divided to internal such as: Traditional in Islamic banking, lack of innovative products, legal obstacles , weak qualified human resources and external constraints such as the absence of specialized financial markets for Islamic banks, in addition to other problems such as globalization, mergers , requirements of modern technology and lack of cooperation between Islamic banks. The most prominent results of the study is : there is a significant effect between supportive factors of the model to overcome the obstacles. The study recommended the adoption of the five-dimensional development model through Highlighting Islamic banking , legislation, Enlightenment, Development and Liberalization in order to enable Islamic banks to enhance their presence at both local and international levels through fair competition and ensuring sustainable development in all sectors of work. In addition, it recommended the importance of establishing Research & Development, encouraging scientific research and innovation of new products. Keywords: Five-dimensional development model, Traditional in Islamic banking, legal obstacles, Financial Markets, Globalization, Mergers.

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