Title: Navigating Challenges: Shariah Compliance and Financial Performance Before and After COVID-19 in the Gulf Cooperation Council (GCC)
Authors: Husam Ananzeh
Volume: 8
Issue: 11
Pages: 159-165
Publication Date: 2024/11/28
Abstract:
This study examines the impact of the COVID-19 pandemic on the financial performance and Islamic banks in the Gulf Cooperation Council (GCC) countries. By comparing key financial metrics such as Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin, and Asset Growth before and after the pandemic, the study aims to assess how these factors have been affected by the crisis. Statistical analysis, including paired t-tests, Wilcoxon tests, and Chi-Square tests, reveals significant declines in ROA, ROE, and Net Profit Margin across most GCC countries, indicating that the pandemic severely impacted bank profitability. However, Asset Growth showed more stability, with no significant changes observed in most countries. The findings suggest that while banks in the GCC were able to maintain asset levels, their profitability and efficiency were adversely affected, highlighting the challenges faced by Islamic financial institutions during the pandemic. This study provides valuable insights into the resilience of Shariah-compliant banks in times of economic disruption and contributes to the broader understanding of financial performance in the post-pandemic era.