Abstract:
In this research paper the portfolio analysis of Dubai Islamic
Bank by using annual data from 2007- 2015. In this study the
population is the Islamic banking of Pakistan. In Pakistan there
proper 5 to 6 Islamic banks are working and the conventional
bank also has the Islamic branch.The study main focus to find
out the stability of the company performance in relation to the
two portfolios one is Islamic financing and second noninvestment
portfolio within the bank. Under the Sharia laws and
rules it is important to see that there is much more interest of
the customers in Islamic financing.The all data is collected
from the financial reports of the Dubai Islamic Bank. The data
is collected from the balance sheet of Dubai Islamic Bank. The
9 years data has been collected. Data is collected from 2007 to
2015. The data collected in the form of two sets that Net
values of both the investment heads are taken for last 9 years.
The convenient technique is used for data collection. In order
to expand the concept of portfolio analysis, as the bank is
purely deals on Islamic structure and policies, the selected
variables are dependent and independent variable. The dependent
variable is company performance and independent variable are
non-Islamic investment portfolio and Islamic finance investment
portfolio. The two are major heads in the balance sheet of any
iii.
Islamic bank. Non-Islamic Investments are actually representing
the value of the Investments that are made by the bank in
different sectors of the Government Companies in the form of
certificates. Similarly the Islamic investments are pure Islamic
tools like Murabaha, Musharaka, and Salam etc. These investments
are purely made on the concept of Islamic Ideology. Although
it’s not that much pure as the conventional system is leading
the whole banking structure but it’s an effort that could help
the Islamic thoughts to be implemented. From the analysis it is
found that the non-Islamic investment is very stable as compared
to the Islamic finance investment.
