The first part of the research looks into the nature of the Islamic banking in the UAE. It uses eight questions to evaluate the subject. The questions gave the respondents three options to choose from depending on their opinion where A' meant to agree, N' no, and D' disagree. As per the research, 85 % of the respondents were of the opinion the Islamic banking in UAE met the Islamic banking standards while 15 % did not know. The results indicated that the Islamic banking in the UAE met the Islamic accounting standards. The result also showed that the authorities in the UAE were working hard to ensure there is compliance with the Islamic banking standards. The banks like other institutions also were working hard to meet the standards. Regarding profitability, 95% of the respondents were of the opinion that one could distinguish Islamic and non-Islamic banks. The difference in the profitability of the commercial banks and the Islamic banks is mainly as a consequence of interests charged by the non-Islamic banks. All respondents in the sample population preferred Islamic banking in the UAE because they were Muslims and they agreed it was more reliable to bank with Islamic banks. However, most of the respondents did not know if most people in UAE had limited knowledge about Islamic banking.
Table 1: Nature of Islamic Banking
Participants responses
A N D
1 Islamic financing in this bank apply Islamic accounting standards. 85% 0% 15%
2 In your opinion, we can distinguish between Islamic and non-Islamic bank from profitability. 95% 0% 5%
3 Different bank systems, principles, standards, policies, objectives and way of controlling expenses and assets impact the profitability of both types of banks. 93% 0% 17%
4 Islamic banks have enough assets to cover its long-term liabilities compare with conventional banks. 68% 20% 12%
5 Most people in UAE have limited knowledge about what Islamic banks do. 8% 12% 80%
6 Some people believe that Islamic banks in the UAE suffer from poor service quality. 38% 14% 48%
7 Dealing with Islamic banks is more reliable because it follows Islamic ethics. 100% 0% 0%
8 As a Muslim, I prefer Islamic banks to commercial banks everything else being equal. 100% 0% 0%
Objectives of Islamic Banking Accounting
In evaluating the objectives of Islamic banking accounting, the researchers used four questions. The respondents were given the opportunity to provide their opinion ranging from strongly disagreeing to strongly agreeing. The first question in this part wanted to find out if the rights and responsibilities of the shareholders comply with the Shariah, which had 83% strongly agreeing and 17 % agreeing. There was 79% strong agreement and 21 % agreeing that the Islamic accounting protects the assets and rights of the shareholders. On the question whether the Islamic accounting assisted the management of the Islamic banks and their productivity had 58% disagreeing, 20% not knowing, 10 % strongly agreeing and 12% merely agreeing. The importance of the Islamic accounting in assisting to legitimize decision made had 80 % strongly agreeing, 12% merely agreeing and 8% not knowing. In general, the Islamic banking objective according to the respondents includes determining the rights and responsibilities of shareholders assist in protecting the assets of the bank and assists management in decision making.
Table 2: objectives of Islamic banking accounting
Participants responses
SD D N SA A
Do you agree that the objectives of Islamic accounting include : 1 Determining the rights and responsibilities of shareholders in compliance with the principles of Shariah 0% 0% 0% 83% 17%
2 Protecting Islamic banks assets and rights in satisfactory manner? 0% 0% 0% 79% 21%
3 Assists in enhancing management of Islamic banks as well as their productive capabilities? 0% 58% 20% 10% 12%
4 Assisting in legitimate decision making regarding transactions of Islamic banks through financial reports? 0% 0% 8% 80% 12%
Relationship between Islamic accounting and Islamic principles
In this section, the study looked into the relationship between Islamic accounting and Islamic principles. The participants were requested to respond to four questions and given an option to answer between strongly agree and strongly disagree. In overall, there was a relationship between the Islamic accounting and the Islamic principles. In particular, 75% of the respondents strongly agreed, 5% did not know, and 20% agreed with the statement that the Islamic accounting methodology forms the base for Islamic accounting principles. There was 100% strong agreement that standardization allows for Islamic accounting to be uniform across the world. The agreement in the efforts to ensure standardization shows there are efforts to ensure that the Islamic accounting grows to the meeting all accounting requirements in the Islamic world for business financial assessments. The statement that Islamic accounting allows business to contact the business efficiently and effectively also had 100% strong agreement. It shows that the method is acceptable for businesses purposes in meeting the religious needs of the society. The efforts to ensure that the Islamic accounting is applied in UAE and other Islamic countries had 60% strongly agreement, 25 % agreement and 15% of the participant did not know. The responses show there are significant efforts to ensure that the Islamic accounting is implemented.
Table 3: Relationship between Islamic Accounting and Islamic Principles
Participants responses
Strongly disagree Dont know Strongly agree
1 2 3 4 5 6 7
1 Islamic accounting methodology forms the basis of Islamic accounting principles 0% 0% 0% 0% 5% 20% 75%
2 The implementation of standardized Islamic accounting methods allows Muslim community to follow same accounting procedures throughout the Islamic world. 0% 0% 0% 0% 0% 0% 100%
3 The Islamic finance methods allow businesses and corporations to perform their financial activates in the most efficient and effective way. 0% 0% 0% 0% 0% 0% 100%
4 UAE and other Islamic countries are making serious efforts to adopt and implement Islamic finance methods in their banking and finance structure. 0% 0% 0% 0% 15% 25% 60%
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