COMPARISON OF MEEZAN BANK AND DUBAI ISLAMIC BANK UNDER THE ROLE OF ISLAMIC FINANCING

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.