A comparison of the profi tability of islamic and conventional banks: THE CASE OF GCC COUNTRIES

During the last two decades the banking sector has experienced worldwide major transformation in its environment. In most countries, banks are facing many challenges (internationalization, deregulation, technological changes and advances, securitization, credit expansion?) that are likely to affect their performance and ability to grow and operate within a more competitive environment. In light of these changes, it has become important to analyze the determinants of profi tability. The study of bank performance is also an important tool to evaluate bank operations and to determine management planning and strategic analysis. Hence, the factors that influence bank's profi tability have been the subject of great volume of literature essential in the competitive banking markets of North America and Western Europe. A few studies have been done on Gulf commercial banks and on Islamic banks, despite signifi cant growth of this type of banks in recent years.