I will take this opportunity to thank Allah for giving me strength to do this project. I would like to thank Prof. fareedy for guiding me throughout this project. Without their guidance and help this project wouldn't be possible for me. They along with my family helped me and encouraged me to do this project.
I would also like to thank my teaching associate Ms. Hadia. She updated me with all the deadlines and her reminding emails helped me remembering the deadlines. Last but not the least; I would thank all the Dubai Islamic Bank officials for giving me time in order to get information. In addition I would thank all the customers of Islamic banking who helped me in filling out survey questionnaire by being a part of it.
Thank you all!
Table of Contents
Executive summary
The bank I choose for the MBA final research project is Dubai Islamic Bank. Throughout my research I have highlighted the problems that Islamic banks are facing in creating and maintaining their customer base. The customer profile needs to be maintained because the competition is growing tremendously in the market and now war is not to be explore the new customers but to maintain the current market share and to take away other's market share.
Literature review, some general interviews and questionnaires have been filled out to better understand the problem and get in depth knowledge as well as insight of problems. Moreover, industry analysis has been done in order to understand how the banking sector in Pakistan works. In the end analysis of the questionnaire has been done and based on that the solution to problems as part of recommendations is given.
Chapter 1: Introduction
1.1 Company profile
Dubai Islamic Bank has the unique distinction of being the world's first Islamic bank, a pioneering institution that has combined the best of traditional Islamic values with the technology and innovation that characterise the best of modern banking.1
The world of finance belongs to those who shape it. DIB has taken a leading role in shaping the
dramatic transformation that UAE has experienced in the last two decades. DIBPL provides a wide
range of services specifically designed to assist Pakistani businesses.2
The services include:
Cash Management Services
Trade Related Services
Investment Banking Services
Services for Small and Medium sized Enterprises
1.1.1 Vision statement
"To be the leading Islamic bank providing sharia's compliant financial services, by creating value for all stakeholders" (Dubai Islamic Bank official website)
1.1.2 Mission statement
"To provide diversified Sharia's compliant financial services and products through the best of innovation, talent and operational excellence while ensuring consistent growth and profitability" (Dubai Islamic Bank official website)
1.1.3 Values
There are a total of five values being practised at Dubai Islamic Bank. These are following:
Trust
Communication
Innovation
Caring
One team, one goal
Dubai Islamic bank has a sharia department that is involved in the transactions bank is doing. All the marketing and campaigns are certified by this department because they want to make sure that nothing is in tussle to sharia guidelines. A sharia audit is also conducted every single month. If a case is found that is not according to sharia rules then that income which is coming from interfere with transaction is donated in to charity and removed from the profile of the bank's profit.
Islamic banks always have to conform to the rules of sharia. It excludes all the transactions that involve alcohol, pork, gambling and so forth. The Islamic methods of finance that are used by Islamic banks justify the basic conditions of sharia protests.
1.2 Company history
Dubai Islamic bank was established in a975. It is the first one in the Islamic banking industry to include Islamic laws in business. They are the pioneers to include Islam and its principles in their practices. Dubai Islamic bank is the largest of its kind in UAE. The Dubai Islamic bank has its shares listed on the Dubai stock exchange market. It is a public listed company in the financial market. The bank is currently operating a total of 62 branches in UAE.3
Dubai Islamic bank is involved in both local as well as international partnerships. After its establishment in Pakistan in 27 major cities, it has spread its network of 75 branches around the country. In turkey they also have a demonstrative office. But in Jordan, the government of Jordan has given them permission and an initial banking license only to operate under the entity of Jordan Dubai Islamic bank. They will have all the rights but the name legally would be under Jordan's government. The operations will be truly of an Islamic financial institution.4
Since its commencement in 2006 in Pakistan, Dubai Islamic bank has taken some major steps to expand its network around the country. A huge number of branches had been open in a lot of cities. They have developed many products under the consumer banking list products to give a competition to the conventional banking and one such example is the state of art sharia compliant products. They are also giving advisory services to retail, private and small or medium enterprises, in addition to that corporate and investment banking is also being offered. 5
Dubai Islamic bank is the pioneer in launching the Pakistan's first ever visa debit card. The introduction of financial products that covers home financing, auto financing and depository products was also done by them. The benchmark products of them such as internet banking are also the charisma of Dubai Islamic bank. Now every bank considers their internet banking and priority banking as benchmark for them. Dubai Islamic bank has hunted foreign investors to be a part of Pakistan's economy. It's only through their effort that the world renowned giants have come over here. 6
Dubai Islamic bank Pakistan limited is 100% owned by Dubai Islamic bank public joint stock company. The parent company is a listed company in Dubai.7
1.3 Management team
The few known officials in Dubai Islamic Banks management team are following:
Mr. Junaid Ahmed
CEO
Mr. Ammar Bin mujeeb
I.T head
Mr. Iqbal Ahmed Ziberi
Country operations head
Mr. Irfan Johar
Internal audit head
Mr. M. saleem
CFO
Mr. Khurram munawar
CRM head
1.4 products and services
The details of various product and services offered by Dubai Islamic Bank are following:
1.4.1 Investment banking services
Dubai Islamic bank has a team of professionals who are the best ones. With their help they have grown so much and have become one of the top most choices by professionals in the investment sector. It has happened in a very short span of time. Now if its regional or local client, they come to Dubai Islamic bank. They are using the local and regional knowledge for their customers and this has given them an edge over the others. They are busy in creating efficient solutions. That is of course sharia driven and guided by Islamic rules.
The services offered by Dubai Islamic Bank are following:
Project finance
Merger and acquisition advisory
Real estate advisory
Balance sheet restructuring
Private placements
Syndications
Sukkkuk insurance
1.4.2 Consumer products
Dubai Islamic Business Finance
Dubai Islamic Home Finance
Dubai Islamic Auto Finance
Dubai Islamic Business Finance
Dubai Islamic Home Finance
Dubai Islamic Auto Finance
Source: Dubai Islamic Bank official website
Chapter 2: Industry overview and analysis
2.1 Overview of Pakistan's economy and banking industry of Pakistan
Pakistan gained its name and recognition of a separate state on 14th August, 1947. Its economy is agrarian economy as major part of its GDP is contributed by the agriculture sector. "The contribution of the agricultural sector to the GDP has declined gradually from over 50 percent in 1949-1950 to about 22 percent in the fiscal year 2009-10 (July 2009-June 2010),but agriculture still remains the major sector of the GDP composition. Other important sectors that are contributing to GDP after agriculture are industry and services, contributing to the GDP about 25 percent and 53 percent respectively."8
There have been transitions in economy of Pakistan since its emergence. "Pakistan has transformed itself from a low skilled agrarian economy to a semi-industrialized economy."9
Financial sector of any economy is very important for a country because it leads to the growth in economy. Therefore, for a country to boom economically, it is essential to have a sound financial system. Financial sector consists of financial institutions as well as non-financial institutions. Banks are the financial institutions and commercial banks are largest of all. Banking sector is considered as the back bone of the economy as it deals with the flow of money which is lifeblood of the economy.
2.1.1 Reforms in Banking Sector
After independence, government worked on developing private sector commercial banks but this effort was till 1971. "The private sector development, however, almost closed during the period 1971-1990, due to the nationalization policy of the Government. During this period, the banking sector came under the Government's control. Since 1990s, the Government has followed more liberal and market-based reforms."10 Since then private sector banks were established. There were five nationalized or big state owned banks out of which two were privatized in first half of decade, 1990.
Banking sector of Pakistan like many other countries has gone through many changes since independence. "Initially it suffered from acute shortage of resources and uncertainty due to the prevalent political and socio-economic conditions. Lack of trained human resource and professionals resulted in poor quality of products and services. State Bank of Pakistan (SBP) was established as the central bank on July 1, 1948 to control the financial sector."11 Laws, rules and regulations changed with time to control the functioning of SBP.
"SBP encouraged the private sector to establish banks and financial institutions in the country. This resulted in unhealthy competition and unlawful practices due to bribery and corruption during the decades of 1950s and 1960s."12
Pakistan banking sector reforms have an impact on entire banking sector. Pakistan's banking sector can be divided into pre- reform and post- reform period. In pre- reform period, all activities in this sector were directed and controlled by government. Local banks were nationalized in 1974 and there were six major commercial banks, few specialized institutions, for credit and saving schemes for households. Nationalization of banks was aimed at direct credit being granted to a few sectors and banks could not lend independently.
2.1.2 Current Banking Sector of Pakistan
Now things have changed and great progress in the banking sector has been made. The Banking sector is now doing well to contribute to the economy. In short, it is playing a crucial role in the development and growth of the economy. "In accordance with the State Bank of Pakistan Act, the banking system of Pakistan is a two-tier system including the State Bank of Pakistan (SBP), commercial banks, specialized banks, Development Finance Institutions (DFIs), Microfinance banks and Islamic banks."13
Looking at the current banking sector of Pakistan, in total there are 39 Banks14 which are operating in Pakistan at present, which includes Public Sector Commercial Banks, Local Private Banks, Foreign Banks and Specialized Banks. Names of banks in each category are given below.
Public Sector Commercial Banks
National Bank of Pakistan
The Bank of Punjab
The Bank of Khyber
First Women Bank Limited
Specialized Banks
Industrial Development Bank of Pakistan
Zari Tarqiati Bank Ltd.
Punjab Provincial Cooperative Bank Limited
SME Bank Limited
Local Private Banks
Askari Commercial Bank Limited
Allied Bank of Pakistan
Bank Al-Falah Limited
Habib Bank
Bank Al Habib Limited
Bank Islami Pakistan Limited
Faysal Bank Limited
Habib Metropolitan Bank Limited
Dawood Islamic Bank Limited
Dubai Islamic Bank Limited
Emirates Global Islamic Bank Limited
KASB Bank Limited
JS Bank Ltd
Soneri Bank Limited
Summit Bank
Meezan Bank Limited
Muslim Commercial Bank Limited
Union Bank Limited
My Bank
NIB Bank
Samba Bank
Silk Bank
Standard Chartered Bank
United Bank Limited
Foreign Banks
Al Baraka Islamic Bank
Oman International Bank
Deutsche Bank
HSBC Bank Middle \East Limited
CITI Bank
The Bank of Tokyo Mitsubishi
Barclays Bank PLC
Source: All banks names that are currently operating are taken from SBP Annual Report, 2010.
Many banks are working hard to innovate new products and increase the number of products and services they offer to their customers as to retain their customers. Small banks are following the trend of mergers in order to become relatively larger entities and to compete with medium size banks whereas at the same time, medium- sized banks are going through the practice of acquisition of small and other medium- sized banks to increase their asset and customer base and to remain competitive.
2.2 Mega environment analysis
Mega environment basically focuses on the external environment of the firm. Following is some detail on the external environmental analysis of Dubai Islamic Bank.
Technology
Technology is changing very rapidly and to compete with this trend businesses have to renew their technology so that they are up to date and can fight with competitors and maintain their share and position in the market. And not doing so can result in the loss of market share and other competitors can take advantage. Technology up gradation is the need of the hour in every firm and also the key to money making. All the firms are competing on technology and the one who has better technology has an edge over the others and so the result is a better customer base as compared to others. Mostly firms have technology as their competitive edge and USP. Dubai Islamic Bank is in good position as far as the technology part is concerned. They will be offering some type of banking services in near future that other banks are not offering. This will give them an edge over the others.
Political and legal environment
Although it is important but it does not have any direct impact on Dubai Islamic Bank or any other business. A bank cannot face a direct political threat but legal threats can be in form of regulations and any change in regulations imposed by central bank of Pakistan. A bank has to be abiding by rules and regulations imposed by State Bank Of Pakistan and it is general for all banks.
Socio cultural factors
Population of Pakistan is growing day by day and literacy rate as well as awareness among people about keeping money in banks is also increasing. In past people does not have proper knowledge and were reluctant to keep their money and valuables in banks. But now people are somewhat aware that banks are the safest place to keep their valuable and cash in banks.
2.3 Current mode (Mintzberg Model)
Most of the banks in Pakistan are using the Mintzberg Model which basically has three modes of strategic decision making.
First is the entrepreneurial mode which is decision making and strategy formulation by only one person who is the owner of the business and the other following his decisions. Second is the adaptive mode, which is distinguished by reactive approaches than proactive as a firm reacts to the situation rather than plan ahead for future events. The last mode of this model is planning mode which involves gathering of systematic information and doing situational analysis and selecting the strategy that suits the situation best.15
Analysing the current situation of Dubai Islamic Bank, one can come to a conclusion that Dubai Islamic Bank is now moving from adaptive mode to planning mode as it is planning and making strategies for the future and doing analysis of the current situation and strategies, then choosing the best strategy among the alternatives. Dubai Islamic Bank is in transition face, to say it more clearly.
2.4 banking industry
Banking is one of the most sensitive businesses all over the world. Banks are playing a very essential role in the economy of a country and Pakistan is no exemption. Banks are custodian to the assets of the general masses. Pakistan has a well-developed banking sector which consists of a wide variety of institutions ranging from a central bank to commercial to specialized and now a day Islamic banks. Banking industry all over the world has changed with the passage of time. New trends are being followed. Like other businesses banks are also focusing on growth and expansion while maintaining their financial stability.
Chapter 3: Literature review
A rigorous literature review has been done on the Islamic banking laws and systems that are currently operating as a part of Islamic banking. The main variables used were banking, Islamic banking, customer satisfaction, loyalty and the factors leading to customer retention. All the articles were found from the largely used database journal site, JSTOR. It had been tried to cover all the variables in the literature review that were related to the research question and the industry in which this research had been done.
In the first article we see that interest charging is prohibited in Islam, and is so in Islamic banking. So the question arises then how does the bank deals with this problem of charging interest because it is the main stream profit making in any business. And one more thing is that the Islamic banks do not allow long term financing to entrepreneurs. But in some cases as of agriculture and industry a bias has been seen in various cases. There are some conditions under which banning debt can increase social welfare because in that way people will be working for each other's welfare but that can be problem causing in some cases, depending on the situation.
Customers are prone to price sensitivity were ever in the world you go but customer satisfaction does not only depend on the level of sensitivity or tolerance to price sensitivity, there are certain other factors that lead to customer satisfaction. As the year passes on the prices rise due to inflation and a well-informed customer knows this so as long as the firms are providing with what the customers want and fulfilling their needs they are not to be afraid of losing out on the customer base. Most important is to provide the after sale services and not to lower the standards set. The benchmark needs to be maintained because that can make customer happy or otherwise in today's world customers don't have to wait for you, as switching rate is very high. So a customer switch automatically as the need is not being fulfilled by one firm, to the next.
A relation between the Islamic banking and finance has never been explored but always under consideration. This article gives insight in to this topic. Islamic banking and finance exposes some of the readings of economic geographies of western-centred traits. And how post-colonial political economy has affected it. And conventional banking and finance has also been discussed in regard to its relation with the Islamic banking and finance.
Customer satisfaction has a huge effect on the firm value, and the value of its stocks. Customer satisfaction is a measure of market's response to earning's performance. The investors and other participants in the stock market pay a lot of attention to the customer satisfaction. Satisfaction as well as the customer interaction with the firms has a significant influence on stock prices.
Customers often use multiple standards as a measure of their satisfaction level. However individual's own standard is the best way to measure it. The use of multiple standards has a differential effect on post purchase behaviours, as the willingness to buy the same product again increases in addition to recommending it to others. The way a product is perceived or expected to perform, if it falls on the exact requirement then also the chances of post purchase and customer satisfaction increases.
Some variables such as quality, performance, satisfaction and repurchase are found to be higher in products and lower for services. This leads us to assume that in case of baking sector there is less likelihood to repurchase as well as satisfaction, quality and expectation is low. But these variables increase automatically when the competition, differentiation, involvement and experience is high but on the other hand switching cost and ease of evaluating quality is low.
To achieve financial rewards firms always have to consider the implementation of long and short term goals. Both are necessary and are of prime importance. Customer satisfaction and performance of financials should be a positive link. This association is seen stronger in the case of larger firms and lower for the smaller ones. Islamic banking is also not fully a pure form of banking it involves some conventional banking principles also. It is an interest free banking system but it also deals with the beliefs and views of the Islamic society.
Islamic banking is operated under the light of Islam and Islamic rules. It is governed by sharia. Islamic banking and value system of Islam deals hand in hand by the banking systems being operated under Islamic system. Pakistani Islamic banking industry has a lot of potential to grow and lead in the field. It has not been fully explored yet but steps are being taken to analyses the dynamics of this industry. Government should take steps to establish a sustainable Islamic banking system in Pakistan that operates under the light of Islam.
Islamic banking origin is strongly bonded to Islamic religion. That is the reason why Islamic banks are considered to have an ethical identity. If Islamic banks have to enhance their image in the society and needs to be well reputed what should they do is that they should comply with the Islamic laws properly. This can be achieved by contributing to zakat, charity and managing the role of top management. This will help them to have a competitive edge over the others.
There is uniformity in Muslim culture, language, norms and prayers all over the world. No matter what ever region they are living in. the uniformity has been maintained from the old days till now. That's the reason it has been even practiced today. Now a day it has been practiced in financial institutions, Islamic banking is a prime example of it. Islamic way of transactions is widely accepted all over the world. It is facing a lot of challenges all over the world but still it is continuing to towards growth. This growth represents its potential for social, political and economic acceptance. Islamic transactions are based on Islamic principles that differentiate it from the conventional banking systems.
Islamic banks show a drastic shift from the conventional banking system. A lot of interesting features it involves, like risk, profit and loss sharing and equity participation from the Islamic ways of financing or Islamic finance. Because of the principle of Riba an Islamic bank is not allowed to charge some fixed return as an advance, but what they can do is that they can use the funds and participate in the yielding of revenues. The ratio for the depositor is determined pre handed. So they are rewarded after wards based on that ratio. But a conventional banking system as we all know works on the opposite basis. Islamic banks are restricted to employ an additional advisor for sharia purposes or a whole sharia board in some cases.
Chapter 4: Research Methodology
4.1 Research question
Are Dubai Islamic Bank's customers satisfied in a potentially growing Islamic banking industry?
Customer satisfaction can lead to destruction or construction of a strong base in any business, depending upon whether customers being neglected or are given full attention. So businesses need to give much attention to their customers. And banking is a service so in service sector more attention needs to be given to customers. Islamic banking is currently operating in Pakistan successfully. But Islamic banks are enjoying only a small chunk of the pie. They need to make it bigger and enjoy more profits.
The problem is this that it is very difficult to make customers fully satisfied in Islamic banking because to deal with them and to retain them is a difficult task. They need to be fully understand the concepts first and then made them to agree on being a part of it, in hope for the best in future. Finance is based on all assumptions. And it is a promise to be fulfilled in future. So people need to be taken fully in confidence.
Pakistan is a country that is full of risk-averse people. Even today after being much aware and knowledgeable still people avoid keeping their valuables in banks. But after talking to some customers I get to realise that if this could be something related to religion than people feel safer, and like being a part of it.
4.2 Methodology
Both secondary and primary research has been done in this project. Secondary sources were journals, newspapers; internet and the primary sources are interviews and questionnaires. To support this research question I have used the quantitative method of research methodology. There are certain strengths associated with quantitative research method. A research can be accepted completed if it is based on quantitative methodology but it is considered not completed if the methodology being used is only qualitative. Moreover there are more advantages of using a qualitative research methodology rather qualitative research methodology.
Quantitative method allows stating the research problem in very specific words. The variables can also be stated very clearly. The information is gathered under controlled environment this allows high level of reliability. And as the data is quantitative, so it allows the observer to measure numerical data easily. Data can be tabulated and gauged easily, after that the analysis can be done. The statistical data can be interpreted easily. Last but not the least this type of quantitative data is very cost effective.
The sample that has been taken for this research study consists of thirty respondents. A questionnaire has been designed first after looking at the research problems of the Dubai Islamic Bank. The questionnaire mostly covers satisfaction, loyalty, and Islamic banking system. A questionnaire has been floated among 30 individuals and the results have been tabulated and then analysis has been done after that the recommendations have been given to the problem.
Chapter 5: Questionnaire analysis
The tabulation of data has been done in excel and then the coding of the data and the results have been found in the SPSS software. The results have been shown in the form of pie charts in this section.
A total of 30 questionnaires were filled out from both males and females. Only some of the very important questions are discussed in this section all the other graphs and charts are put in the annexures section of the report.
First of all the respondents were asked whether they have any personal account in any bank and they said yes they do and some of them didn't. After that the respondents who said yes were selected to continue the questions. When asked about have they personally visited any bank in past three months, 33.3% of them said yes and 96.67% said no. These questions were a part of screener questionnaire. After that the respondents were selected who said yes about the first two questions. Then they were asked would you like to be a part of Islamic banking all of them said yes. Pushing us to inquire further and go deep that why would they want to be a part of Islamic banking, what is triggering them. This question was not a part of the questionnaire but asked separately. Most of the people said that they want to indulge in Islamic banking because of the involvement of religion in it.
The further questions asking in which bank you have an account and which is your main bank in regard to bank account management. The 50% of the respondents were a part of Dubai Islamic bank, so the further questions were asked only from them.
After that starts the real questions related to the products and performance and services of the Islamic banks. 53.33% of the respondents said very good. So it means that Islamic banks are treating their customers well. A very small percentage of 3% said poor, which is almost negligible percentage. Over all they are all happy and satisfied with their banks services. This is a positive thing.
The respondents were asked that based on their experience of Islamic banking would they recommend their bank to the others they know, in their friends and family or relatives. A large percentage of the respondents answered yes. The 63.33% said probably yes if they have to recommend to any other they will respond positively. This shows their satisfaction level with the bank they are dealing with.
When asked about the purchasing of products and services of their bank again the answer was a yes. The percentage was 43.33% saying yes.
I have asked that how would they rate the comparative advantage of their bank with any other Islamic bank. 40% said some advantage while 36.67% said a big advantage, so there is a small difference that is seen here.
The concept of sharia guided Islamic banking is not to so clear because the ratio of people being neutral about it and those who agree are same. This implies that customers fall in both the categories easily. They are quite clear, some of them, that Islamic banking is dealing with the concepts of shariah.
Most of the customers strongly agree that the concept of riba is haram in Islam. Whereas a large percentage showing that people don't even know about this, being neutral. Riba is interest and people in today's world are mostly earning a lot of interest that the fine line between halal and haram ha almost diluted.
Profit making is essential for any business whether it is a bank or some NGO. All of them need money to survive, and 56.67 % people agree with this. Then how the Islamic banks make money, this is the question that arises next, answered below.
When the respondents were asked about the concept of dealing in Islamic banking which is the main point of concern and basic principle on which Islamic banking deals that is the Islamic banking deals on the principle of profit and loss sharing basis. Almost entire respondents agree. 60% strongly agree on this concept.
56.67% agree that Islamic banking has a potential in the future to expand and more people going towards it and entering in to halal way of banking. Islamic banking is the next to be successful. While 13.33% strongly agree and said that Islamic banking has a lot of potential.
36.677% strongly agree that religion must not be involved in transactions. Then is Islamic banking involving religion in the transactions, not really. It only involves laws and rules of the religion.
53.33% respondents said branch reputation is very important while dealing with the branch networking. If the repute of the bank is not good then it is not preferred. While filling the questionnaire, some of the females feel hesitant while going to branches located in the inner Lahore.
Bank timings are very important to 46.67% of the customers. And to 36.67% people it is extremely important. The banks need to be doing business on time and when promised.
The ambiance of the bank is very important to customers. They want to go to those branches where the ambience is good. 40% people said it's very important.
Staff of the bank needs to be extremely humble and deal with people in an extremely well manner. And to 50% of the respondents it is extremely important. One of the respondents said that she changed her bank only due to the dealing of the staff, so this factor is very important. If it can convince a person to change her bank then it can lead to other problems or even can be beneficial.
Transaction handling is extremely important to 56.67% of the customers. If even a rupee is mishandled it can lead to trouble both for the banks and customers.
There was a larger percentage that did not have complaints with their bank, but 43.33% said that they have complaints regarding small issues at time and again, but they were solved.
It took them a while, the bank to solve the problem but a larger percentage 43.33% said that the problem was solved immediately. So the customers were never neglected by their banks.
A huge percentage of the people almost 70% is using online banking facility and didn't found many problems in it. This means that the online banking facility is working quite effectively.
26.67% of the customers are highly satisfied and 60% are satisfied with the use of online banking facility.
Chapter 6: Recommendations and Conclusion
Dubai Islamic Bank has grown over the years in terms of employees, branch network, asset base, liabilities base and customer base. With this growth many problems were also faced by Dubai Islamic Bank, regarding the Islamic concept of banking. Following are some recommendations for Dubai Islamic bank:
Customer services are considered majorly as a key to success in services industry. Dubai Islamic Bank has an edge in this aspect because they are performing best. If they will improvise more on it they can bring a better image in the market and will surely attract more customers.
They should meet their time lines, so that extra operating costs can be controlled.
They should open more branches in cities, so that the branch network can be extended.
They should also focus on the branchless network, so that it can cater to a larger population like in small villages and under developed areas, where opening of a full fledge branch is not possible. In this way a larger proportion of the population can be a part of its customer base.
Dubai Islamic Bank presently offers a wide range of products and services, but it should further broaden the range of products and services to attract more customers and retain the current customers.
They should expand on its customer base, to grow more, enjoy more profits and increase its ranking to compete with the top five banks that are enjoying highest profits.
Dubai Islamic Bank should do a strong marketing of Islamic banking like the other conventional banks do.
They should focus on research and development to improve and develop new financial systems in a country like Pakistan.
All these recommendations if implemented successfully will help Dubai Islamic Bank in terms of growth in the Islamic banking sector, financial stability and positioning.
After the questionnaire analysis it has been found out that customers of Dubai Islamic bank are somewhat satisfied from the services of the bank. And do not have many problems related to the services that bank is currently offering, it is recommended that they should include more services in order to cater better to their customers.
Islamic banking is based on the concept of interest free in any kind of business. Interest receiving and paying is prohibited in Islam. And the customers of Islamic banking are aware of this concept. Islamic finance is a largest growing sector and due to the acceptance of Islamic banking in Pakistan it is concluded that Islamic banks should concentrate towards growth because there is a lot of potential and opportunity for Islamic banks to grow, especially in an Islamic republic like Pakistan.
Islamic banking will enhance the investment opportunities because the Muslim community will participate more in investments and businesses because they will be sharia guided. This will ultimately enhance the economic condition of the country and will lead the country to the path of prosperity.
