The role of Yemeni Islamic banks in advancing development

Abstract

The importance of research has emerged through the
position occupied by Islamic banks in the banking arena, which
had an effective and significant role in facilitating and reviving the
wheel of economic development in various fields within a short
period of time, using their savings to meet the needs of institutions
and the business sector and employing them to increase their
contribution to achieving development.
This research aimed to know the extent of the effectiveness
of Yemeni Islamic banks in achieving economic development
through the financing formulas used in them that show us the
extent of their contribution to the volume of investments and the
gross domestic product that helps create job opportunities in
Yemen.
The researcher found that there is a continuous growth in
the size of the assets, total resources and capital of Islamic banks,
in addition to that the modes of Murabahah and Istisna'a had a
large and effective role in developing projects in the field of
housing and building residential cities, while their contribution to
the GDP was very small because Islamic banks rely on the
Murabahah formula more than the other financing formulas used
in them. Therefore, the researcher recommended finding ways and
devising methods that work to attract depositors to increase their
deposits and operate them by diversifying the different financing
formulas to achieve investment expansion in various economic
sectors, and to provide job opportunities in a wider manner. Also,
by increasing the number of branches of Islamic banks in all
Yemeni governorates, to provide their services to the largest
possible number of citizens, and to spread Islamic banking
awareness in a way that serves the achievement of economic
development in society