Portfolio Analysis of Dubai Islamic Bank

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.