The Influence of Oil Prices on Islamic Banking Efficiency Scores during the Financial Crisis: Evidence from the MENA Area

The present paper measured the influence of the oil prices on the Islamic banking efficiencies scores during the financial crisis of 2008-2009. The study showed that there is no a direct relationship between the oil prices and the efficiencies scores of Islamic banks in the MENA area. Furthermore, the study demonstrated that Islamic banks in the GCC area showed a higher mean in pure technical efficiency compared to Islamic banks in the North African and other MENA. Islamic banks in other MENA countries and North Africa considered to be technically inefficient. The inefficiencies were due to the underdeveloped banking system and the lack of experiences in those countries to allocate resources between the bank inputs and outputs.