Abstract:
An Islamic bank that abides by Sharia law is one that practices Islam according to its teachings.
Here, Riba-free and moral transactions are carried out, and they actively contribute to the goals
and aspirations of the Islamic economy. This study examines the effectiveness of two Islamic
Banks of Pakistan from 2018 to 2022. Meezan Bank and Dubai Islamic Bank's performance has
been examined and evaluated in this study. Although traditional banks are also operating in
Pakistan and play significant roles but does both of the Islamic Bank of Pakistan (Meezan and
DIB) function better than each other? By comparing the financial metrics for profitability,
liquidity, and solvency, the overall performance of the banks in both categories was analyzed.
According to the study, Meezan Bank will be more lucrative than Dubai Islamic Bank between
2018 and 2022. When compared to Meezan Bank, Dubai Islamic Bank falls short in terms of
liquidity, debt-to-asset ratios, and asset turnover. While Dubai Islamic Bank in Pakistan is at an
efficient stage but not as fulfilling as compared to Meezan Bank’s given the performance history
from 2018 to the present through the end of December 2022, Meezan Islamic Bank has
demonstrated great performance across a variety of parameters.
