Determinants of financial profitability -Econometrical analysis of UAE and Qatar’s Conventional and Islamic banks-

Résumé

In a context of instability and strong changes, the question of financial intermediaries’ performance has grown to become an influential issue. This dynamic notion remains difficult to measure, not only because of its complexity but also the multiplicity of its determinants. The purpose of this research is to measure the impact of the last financial crisis, on the global performance levels of conventional banks compared to their Islamic counterparts, through the identification and the assessment of the main factors affecting their profitability and efficiency.

Our empirical approach will be illustrated by econometrical models, conducted on a sample covering two thirds of the banks in the UAE and Qatar, on the basis of which we will attempt to evaluate the performance levels of the two financial intermediaries to understand their behaviour and to provide a typical model of banking operations. Taking into consideration the results of the estimates obtained, in order to use each of the determinants evaluated by the exact weight assigned to it, and maximize banking profitability.