ABU DHABI ISLAMIC BANK - CASE STUDY Example | Topics and Well Written Essays - 2500 words

ABU DHABI ISLAMIC BANK - - Case Study Example Moslem banking became popular in Arab countries by 2003 and also in Malaysia. The number of banks change magnitude to 450 during 2009 moreover about 300 conventional banks are observed to offer to Islamic banking products and services to the customers. In the last five years, Islamic banks had witnessed rapid addition in assets, which have doubled during the period (ADIB, 2014a).The Islamic bank is referred to the bank that follows the Sharia principles with regard to financing, investment and banking. These banks are controlled and supervised by the Central Banks. The banks receive the requirement of the customers by following the Sharia principles (Siraj, and Pillai, 2012). It provides with a number of options that helps the customers to safe guard their investments and finance. These options are Musharakah (joint venture), Ijarah (leasing), letter of credit, Murahaba (Cost plus) and covered cards. The banks have Sharia boards, which comprise Islamic jurists, who consult and control the different aspects of the new banking transactions (ADIB, 2014a).During the global financial crisis, it is observed that the banks were affected severely however, it hardly made any impact on the Islamic banks. Mortgage crisis was regarded as the main cause of the situation in the US. The stability in Islamic banks originates from its nature of business as the financing method acting is based on Sharia principle, which dictates Musharakah, Ijarah and Mudarabah (ADIB, 2014a). In light of the above principles and practices that are followed by Islamic banks, the following case analyses the operation of Abu Dhabi Islamic Bank (ADIB). The case highlights the financial condition of the bank post and pre-financial crisis.ADIB was founded in 1980 and presently it has become the largest financial institution operating under Sharia principle in Egypt. It has original the highest market standards. It employs around 2000 employers who for m a dynamic