The Islamic Banking Industry in Jordan

Thirty-three years ago Islamic banking was considered wishful thinking. However, serious research over the past two-and-a-half decades has shown that Islamic banking is not only feasible and viable, but is an efficient and productive way of financial intermediation. A number of Islamic banks have also been established during this period in Jordan. The objective of this paper is to examine the structure and performance of the Islamic banking industry in Jordan during the period 2000–2006. We find that the Jordanian Islamic banking industry is still in its infancy compared to a number of countries in the region and there is a growth trend in the financial services market, despite its current concentration and limited size.