ASSESSING THE RISKS OF INVESTING IN ISLAMIC BANKS: A COMPARATIVE STUDY BETWEEN EMERGING AND DEVELOPED MARKETS FROM 2020 TO 2024

Abstract

This essay compares the case of Al Rayan Bank in an established market with that of Iraqi Islamic Bank in a growing economy, in order to assess the risks of investing in Islamic banks by analyzing major financial facts, risk indicators, and market possibilities for the period 2020–2024, which helps to evaluate the investment climate in both institutions. Secondary data from financial reports and risk assessment studies, together with market research, identifies the major factors influencing these institutions' risk profiles to be liquidity risk, market volatility, regulatory obstacles, and financial health. While Al Rayan Bank, running in the developed market, retains higher profitability, stronger capital adequacy, and lower risk-adjusted returns, Iraqi Islamic Bank has more liquidity risks and regulatory obstacles that restrict its capacity to generate better returns.