'5.1. Critical Discussion of Findings in Relation to Literature and Theory Essay\r'

'5. 1. 1. Over Restrictive regulative Environment The respondents to the inquiry of whether the environment of too restrictive enactments was a ch every(prenominal)enge indicated virtu bothy without exception that indeed the restrictive sentiment was stifling to at least nearwhat limit. This indicates that the regulatory environment modernly cosmos experienced in the capital of capital of Kuwaiti depones surveyed is in keeping with the general view of Muslim chamfers as reported in the publications canvased.\r\nThe avowing environment created has boot outd to be unsound, and it accords with the ideas of weari any(prenominal) (2003) demonstrating that it has non been conducive to the nonioniveness and cogency of nine of the ten monetary intros surveyed. The true state of the Kuwaiti vernacularing system, though improving, demonstrates that insurance coverage and the monitoring of cracking and encounter provoke suffered due to the heavier restrictions pr imed(p) on the shariah compliant banks.\r\nSee to a greater outcome: overage Age Problem essay\r\nSince the restrictions ar greater for these banks in comparison with the received banks, the Moslem banks arrive at indeed been infinited at a disadvantage in array the commercialize and this has cause them to be less economical and and so less attractive to prospective guests. This pretermit of attractiveness makes it even off to a greater extent seeming that these banks entrust remain time out foc employ and relatively sm all in all in comparison with the disputation. 5. 1. 2. Uni plaster cast Regulatory and efficacious Frame progress to The respondents to the survey indicated unanimously that the pretermit of a resembling regulatory and intelligent modeling poses a challenge to the current Moslem pecuniary state.\r\nThe resolution to this disbelief susceptibility seem enigmatic in vague of the previous one. However, though the sharia law imposes restri ctions on the types of movements that cleverness be performed in Moslem pecuniary intros, it is the regulation of these restrictions that accommodate be to be without uniformity. This privation of uniformity has been shown to nominate crippling put ups on the Kuwaiti institutions surveyed. The feature is that one time regulations acquire uniform, this serves as a retain mechanism to the institutions that fol starting time the regulations (Dudley, 1998).\r\nThe fuss with this insufficiency of regulation is that Moslem institutions feel been exhausting to conduct business jibe to sharia law, in so far this has to be make at bottom the stately Western pecuniary frame practise which does non lend the comely type of escort to shariah banking policies. This has been especially sturdy in Kuwait since so m either of its banks atomic number 18 Muslim and yet the uniform regulations that direct be very much at betting odds with the shariah principles by which these banks ar run.\r\n on that point app arntly whitewash get overs to be problems disdain the 2005/06 regulation attempts by the Central aver of Kuwait, and it makes it assimilate that the mere addition of a separate shariah law section to the regulatory laws is insufficient. What is demanded, app bently, is full and complete integration of the sharia law into the regulatory system at each pertinent level so that fiscal institutions will k at one time how to act in a wide array of situations. 5. 1. 3. underdevelop Regulatory and Supervisory Regime.\r\nAkin to the same problem, and perhaps stemming directly from it, is the fact that all respondents agree that the supervisory system of regulations is underdevelop in their fiscal institutions. When no imperious regulatory doctrines defecate been formulated, the worry breaks because supervisory activity has no clear acquaintance of what to supervise or guard against. Because of the underdevelop record of the s upervisory elements, Moslem monetary institutions in Kuwait broaden to shoot a line as it regards the attainment of success and node satisf action.\r\n guests in these institutions hindquarters non be undertake in receiving fair treatment from institutions that take a crap no active and systematic inadvertence. The respondents did not involve the current state of regulation supervision to be completely inadequate, as their responses insinuate toward the acknow guidegement that the IFSB’s efforts at establishing co-operation among standard-setting bodies have had some party favorable impact on the Kuwaiti situation. However, hood adequacy and risk management re get except two of the more(prenominal)(prenominal) than subject fields in which supervision is pick uped to the health of Kuwait’s Moslem fiscal institutions.\r\nThe responses as closely indicate that the IFSB’s intentions of extending supervisory cooperation to the atomic number 18as market smirch transp bency and ch group Aaign as healthful as embodied reign overance are warranted. 5. 1. 4. Capital and fluidity Requirements The requirements of s healthful and liquid state in spite of appearance the fiscal market sphere have been theorized as having the potential to be damaging to the Islamic financial institutions around the world. However, the rationalitys given for this potentially problematic effect reflect a division among theoreticians and those employed deep down the financial sector.\r\nThis worldly concern of controversy is confirmed indoors this seek of the Kuwaiti institutions, as deuce-ace respondents take ined runniness and seat of government turn ups to be of strong point to elevated grandness, while the some other(a)wises considered the restoration to be of very little greatness. One side of the controversy identifies the issue of jacket and liquidity as stemming from the Basel Committee’s over-estimation of the risks that might accrue to (or as a settlement of) the assets of Islamic institutions.\r\nThese theorists indicate that they believe the risks are not as great as others might believe, and it is with this view that those respondents agreeâ€who indicated that liquidity and capital were not an issue. The alternate suppositional view, with which the survey shows three respondents agreeing, is that Islamic financial institutions present more risk than other banks do. The fact that these banks are generally small and carry a narrower capital institution seems to reflect a large expound of what these respondents refer to when they consider liquidity and capital to be a risk in such institutions.\r\nThe respondents do not, however, indicate any aversion to the physical composition of a capital market that would trade in Sukuk and other instruments, and even deepen the market so that additional liquidity might be created. 5. 1. 5. Accounting Standards Harmonization According to the responses given, the issue regarding the standardisation and harmonisation of accounting practices ranks extremely on the list of things that need to be dealt with at heart the Islamic financial institutions of Kuwait.\r\nThe brilliance of this harmonisation has make itself clear at heart the institutions macrocosm studied, as the lack thereforece has contributed to the inhabitence of a shal number 1 capital market that lacks fairness, efficiency, and transparency (IOSCO, 2004). The credibility apt(p) Islamic financial institutions as a result of recent work by AAOIFI has mendd operations enough to punctuate the magnificence of accounting harmonisation. As it now stands, the harmonisation initiative has improved the tycoon for Kuwaiti financial institutions to slide by with other non-Islamic banks as accounting standards have been convey in harmony to a greater degree.\r\nThis appears to have as well accorded the banking system a sympathyable count of credibi lity in the estimation of other institutions and accorded to Islamic bank workers a gameer level of value among their peers. Yet more unavoidably to be done, as has been indicated by the interviewees’ responses. Continued efforts to branch out the scope of harmonisation promise to improve the status of Kuwaiti banks in spite of appearance a financial situation in which the volume of institutions do work according to inter kingdomal accounting standards. 5. 1. 6. Standardization of sharia law\r\nThe respondents were universally agreed that the proper standardization of sharia law was inevitable not lonesome(prenominal) to the proper go throughing of the Islamic banking principles, but at long croak to the proper governing of all financial institutions in Kuwait. The survey naughtylights the confusion that shortly subsists indoors the market and the formation of a common platform, as suggested by Kahf, does have the potential to improve the existing problem. Th e standardization of the shariah law would have the added benefit of make it easier for non-Islamic bankers to gain the provisions and requirements of the sharia as it regards banking.\r\nThe facilitation of Halal transactions might then be put into effect mingled with such banks and Islamic institutions in Kuwait. much(prenominal) standards will help non-Islamic members of the banking community understand such ideas as the requisite that an rudimentary asset exist as the beat of any financing contract, so that institutions will be better prepared to furnish more than just a debt cuttingspaper publisher when conducting Shariah transactions . Therefore, any transaction that resembles Riba, Maisir or any other action prohibited by Shariah may be avoided.\r\nHalal practices might be set up even inside non-Islamic banking institutions, and this may hasten increase contest and better practice all round. 5. 1. 7. argument from Conventional Institutions Competition is its elf considered by theoreticians to be a problem for Islamic financial institution as these businesses are usually small and cause a little capital base than their competitor institutions. The respondents themselves have besides indicated that competition is an important devotion for the Islamic banks of Kuwait.\r\nHowever, the degree of importance to which these respondents have admitted have varied across the spectrum from low to high. The Islamic institutions of Kuwait appear also to have gained a vast amount of capital (via Sukuk and other rules) by large-hearted on religious grounds and the establishment of a capital market through those means (Iqbal, Ahmad and Khan, 1998). This would indicate why some respondents consider the panic of competition to be low, especially since the Islamic institutions have a religious claim to node homage that competitor institutions may not possess.\r\nHowever, the importance of competition among Islamic institutions appears not to be overlooked by those respondents who considered the brat of competition to be high. Still, though competition may be high, the actual threat it poses may still be low as competition has the advantage of presenting a barrier to the entry of further banking institutions. Furthermore, the existence of non-Islamic financial institutions deep down the Islamic sector may have been considered favourable by those persons who responded that the threat is low.\r\nThis may be because the carriage of these institutions validates the viability of the Islamic banking sector (Al Omar & Abdel-Haq, 1996). 5. 1. 8. accessibility of Data The issue of entropy approachability rates super within the Kuwaiti Islamic financial sector according to the respondents. These interviewees appear to understand and have had problems arising from the difficulty with which selective information and statistics are obtained regarding the Islamic capital markets (IOSCO, 2004).\r\nThe necessity of scientific search and the want of such statistical market data are also addressed in this response by the interviewees; such research has rarely been undertaken by Islamic banks. The unavailability of data is a major(ip) reason for this lack of valuable research, and it appears that respondents realize that this has opposeed Kuwaiti banks from reaching their fullest potential. The current information have for banks on a broad Islamic scale is lacking, inadequate and subject to qualifications.\r\nThis appears also to be the case for the banks in header entraped by the respondents. 5. 2 little Level Changes 5. 2. 1. Liquidity Management each respondents considered liquidity management to be of high importance, and this is in direct contrast to the polemic nature of the issue regarding liquidity and capital requirements. This is in keeping with the literature and opening prevailing within the Islamic banking community, which identifies this to be of major importance, especially in li ght of Islamic banks’ bid for globose expansion.\r\nIn Kuwait too this proves to be of elicit to the Islamic bankers, and the umpteen challenges which grammatical construction the market are likely to be the reason respondents invariably indicated it to be of high concern. sure enough ideas abound regarding how to manage the liquidity within the Islamic market. Methods as have already been identified such as the brand (unbundling and repackaging) of assets in order to make them more marketable and liquefiable (Iqbal, 1997).\r\nThese methods, along with the acknowledgement of potentials for inter-bank market evolution (El Qorchi, 2005), are ones that would doubtless prove valuable within the Islamic financial market represented by these respondents. The depth of the market would be increased in such a situation, and this would prove to be beneficial in the Kuwaiti market that is expanding two within the bucolic and on a global scale. However, these measures would n umerate on further developments that may present difficulties materializing, and the gravity of this is also reflected in the response to the suspensenaire.\r\nSuch developments would include the installation of a facility that trys a lender of last resort. It would also involve securitization for the purposes of managing the spectrum of risk as well as matureness issues (El Qorchi, 2005). 5. 2. 2. adulthood Mismatch The maturity mismatch issue appears to have contributed to a division among the respondents regarding their responses. charm some considered this problem to be of high importance, these opinions were balanced by those who considered the issue to be of medium or low importance.\r\nThose respondents who unwrap maturity mismatch as a low-ranking problem gain assurance from the hazard of using Tawarroq (debt rollover) as a method of financing maturities. The fact that the Kuwaiti Islamic banks they represent have the ability to pay the debt of the ultimate creditor u sing customer coin allows these respondents to feel secure (Al-Suwailem, 2006). However, those who consider maturity mismatch to be a high-ranking issue do so likely because, as has been indicated in the literature, perplexitys do exist concerning the extent to which debt-rollover bear be used to finance or match maturity.\r\n otherwise problems, too, lie in the fact that in order for these policies to perform freely, other things previously mentioned would have to be put into placeâ€such as accounting harmonization (for the smooth political campaign of the capital market). Since these systems are not fully up and running in the Kuwaiti market, then this might explain the apprehension that some of the respondents have concerning the maturity matching issue (IOSCO, 2004). 5. 2. 3. forcefulness Competence, Qualifications and Training\r\nThe issue surrounding military force competency and training in the area of Islamic and Shariah institutional banking has been obdurate t o be of high importance by all but one of the respondentsâ€who still considered it to be quite relevant within the Kuwaiti situation. In order to continue its expansion within the local and global markets, the banking system within Kuwait necessarily to facilitate the training of its force in all areasâ€including the areas concerned with Shariah banking (Iqbal, Ahmad & Khan, 1998).\r\nThis necessity has been reflected in the responses, as incompetence has no doubt been the issue within the banks they representâ€judging from the fact that around consider it to be of high priority. The problem arises because (among other things) customers are generally more accustomed to the conventional style of banking. Where, as in Kuwait, the volume of banks are westernized and handed-down, it takes short imperative that the personnel be well familiar not just with the practices pertaining to Islamic banking but also with the Shariah doctrines that govern them.\r\nWithout this knowledge, it is likely that employees do not possess the expertise requisite to explain to customers the meanings and Islamic implications of certain banking or coronation practices. The respondents to the questionnaire, being banking personnel themselves, have first-hand knowledge of the problems that may arise when personnel are ferocious or unqualified. Their response also points toward the need for more scholars who specialize in both finance and Shariah, as well as the need for focussed development of courses in Shariah designed specifically for the economic expert (IOSCO, 2004).\r\n5. 2. 4. Financial Products and Innovation Innovation and the development of financial laps appear to rank extremely in the estimation of Kuwaiti bankers and investors, as is indicated by the responses to the questionnaire regarding this issue. The idea behind this wide-spread betrothal of the progressive process by these Kuwaiti respondents stems from the possibleness that the viability of these Islamic institutions as an substitute(a) to conventional banking rests on the ability of the bankers to provide a wide variety of vernal methods of enthronement for potential investors.\r\nThe respondents, being high-altitude investment personnel working in Kuwait, are at least assured of the plethora of ship johnal that Islamic and Shariah banking methods differ from the conventional methods of banking. These differences offer a variety of ways in which renewing might be brought to bear upon the Kuwaiti financial market and be do to attract newer investors. Such ideas as Mudarabah and Musharakah are likely to draw prospective investors previously deterred by the prospect of bearing the absolute losses of their ventures.\r\nFurthermore, such persons as the respondents represent are in touch with the require that customers have, and this knowledge allows them to realise the necessity of develop financial products that cater to these inescapably (Al-Suweilem, 20 06; Bacha, 1999). As a result, supply will work toward creating an equilibrium with the demand that exists. Concerns may arise from the fact that these persons are also apprised of the need for an in-depth fellow feeling of the array financial instruments in order to put into effect galore(postnominal) another(prenominal) of the transmutations necessary within Kuwait’s Islamic financial institutions (1999).\r\n5. 2. 5. Products and run’ merchandising The imperative nature of the selling of products and functions is reflected to some extent within the responses to the questionnaire. Though most consider this to be of importance, one person did offer a dissenting voice. Those who did agree were also divided as to the extent to which product marketing is necessary. It is likely that the dissenting person places the advanced(a) development of products in a more prominent place, arguing that until products are create no marketing will be necessary.\r\nThis is ce rtainly true. However, the fact that so many of the respondents acknowledge the necessity of marketing makes it clear that they understand one of the major issues go round Islamic financial institutions: customers are for the most part unaware of the function that are offered and the ways that these services could be of benefit to them. understandably this is as much the case in Kuwait as anywhere else since so many respondents in the affirmative concerning the issue. 5. 2. 6. sizing of Institutions Institution size is an issue on which most respondents again agreed.\r\nThese Kuwaiti investment professionals appear also to face challenges which are similar to those faced by all banksâ€that of garnering a sufficiently wide investment base in order to reassure security and to maximize their competitive dexterity within the market. Since the questionnaire specifically asked whether size present a challenge, the answers indicate that even in Kuwait, smaller banks tend to suffer from a higher level of risk on the financial market. What is also probable is that these smaller banks are represented mainly by the Islamic and Shariah compliant banks within the country.\r\nThe earlier replies concerning the need for marketing and designing therefore apply to this question of size, as development of strategies along these lines would enable ingathering and deepening of the institution as well as the market. It is likely, therefore, that (regarding the question of the challenging nature of institution size) the moderatering responses demonstrate the need for expansion of Kuwaiti Islamic financial institutions. 5. 2. 7. Institution Rating and Instruments Theory, literature, and this survey concur on the question of the importance of institution rating.\r\nThough the matter is brought up as a subject of relevance within the Islamic banking community, it has not been treated as a major issue. This is seen especially in the fact that it remains a question whether o r not such ratings should be made obligatory for financial institutions. The respondents to this question gauged the importance of ratings to be of low or medium range, indicating that in the Kuwaiti Islamic banking system, though ratings are also relevant, it is not the question of utmost importance to anyone concerned. The importance of ratings has however been established by the respondents within the Kuwaiti market.\r\nDespite the fact that they consider it of low importance, they do indicate that it is considered a pertinent issue. One reason for this would be that the IIRA does exist as a be to assess (among other things) the Shariah residency of Kuwaiti financial institutions. This may have a bearing on the consumer faithfulness that might be considered important to the proceed operation or wellbeing of many of these institutions, especially in light of the fact that many Kuwaitis choose Islamic banks (over the competition) on the button for reasons having to do with Sha riah compliance.\r\n5. 2. 8. Inadequate predisposition to Customer Satisfaction age some all respondents identified inadequate aesthesia to customer comfort as a challenge, of some concern is the fact that only a few Kuwaiti banking personnel identified it as a highly important one. It is plain that Kuwaiti bankers understand the situation of competition that exists within that nation’s financial market, especially since in Kuwait only three of its 15 banks are Islamic.\r\nIt becomes imperative that consumers are well-provided within such a market where (with 76 other investment companies) alternating(a) banking institutions about. What the Kuwaitis may be counting on is the fact that consumers who use Islamic financial institutions already have their primary needs met in a bank that is Shariah compliant. Still, as represented earlier, Kuwaiti’s banking personnel recognize the need for creating innovative banking products that cater to the desires of the consum er. They also recognise that in order to cater to these needs, sensitivity to customer satisfaction is indispensable.\r\n5. 2. 9. Inability to Communicate singularity The challenge faced in identifying the queer attributes of Islamic financial institutions is admitted by the legal age of banking professionals surveyed. However, the importance of this issue seems to be only minimally appreciated in Kuwaitâ€according to the data collected. This idea goes backrest to the question of marketing, and in which it was also evident that Kuwait felt no major compulsion toward pushing the Islamic banking product to consumers.\r\nConcerns about the future of Kuwaiti Islamic banking might here be explicit as it has been shown through the theory and literature reviewed that the ability of these institutions to become strong, viable, and known preferences to conventional banking depends on its divers(prenominal)iation within the market (Khan & Ahmed, 2001). 5. 3. deprecative Engage ment with Areas of carrefour 5. 3. 1. lap on Shariah conformance Issues In some very life-sustaining areas, it was appoint that the responses made by these Kuwaiti financial professionals strongly support the theories found in the literature.\r\nThe strength of this support points in many cases toward not only the importance of the question but also the extent to which changes are necessary within the Kuwaiti finance environment. The unanimity with which the respondents answered the question of uniform regulation challenges leaves no doubt that the lack or inadequacy of regulation transaction specifically with Shariah compliance has a crippling effect on the Kuwaiti banking system. Since the Shariah’s restrictions and requirements may often be intricate, the lack of uniformity within the Kuwaiti market (as has been predicted by literature) has led to problems.\r\nSuch problems have the potential of ranging from obviously an inability to properly execute in the Shariah-c ompliant areas of banking, or the inability to detect and prevent the inappropriate actions of institutions that claim Shariah compliance. What the Kuwaiti banks have demonstrated is a convergence between theory and practice in that without a proper regulation system, the Shariah support mechanism for the institutions has also proven to be substandard (Dudley, 1998).\r\nIslamic institutions in Kuwait, while trying to conduct Shariah compliant business, have the added problem of working within the sometimes contradictory framework of conventional Western banking. Furthermore, the problem proves more crippling in the Kuwaiti finance environment as the Islamic banks are many, yet are lost in a world of regulations that prove more hospitable to the competition. The fact that problems still exist despite the 2005/06 attempts at regulation by the Kuwait’s central bank (CBK) only points to the magnitude of the problem as represented by Shariah regulation and the necessity of uniform ity within these regulations/.\r\nIt also demonstrates the inadequacy of simply tacking on a Shariah amendment to existing law. What this research has shown to be truly necessary is a thorough review of current regulations that culminates in the full integration of Shariah. This will facilitate the continued running of Islamic (as well as conventional) banking institutions within the financial environment. 5. 3. 2. Convergence on Competence and Training in Shariah The importance of personnel competence and training in Shariah banking is also an area that demonstrates convergence of practice in Kuwait with the theory.\r\nIt highlights the immense need for knowledge and training in both Shariah and banking (IOSCO, 2004; Iqbal, Ahmad & Khan, 1998). The lack of thorough understanding of the key Shariah concepts (as introduced earlier on in this research) is shown to be a preventative to optimal practice in the Kuwaiti financial environment. Since consumers are more used to convent ional banking, this makes it all the more necessary for banking personnel to be fully fitted out(p) with knowledge and expertise in Shariah financial management so that all consumer queries might be dealt with thoroughly and professionally. 5. 4.\r\nCritical Engagement with Areas of dissension 5. 4. 1. variation on Marketing and Innovation Issues Despite the consistency of the responses with the theories presented in the literature, there were also some areas where responses disagreed with theory or amongst themselves. The areas represented are product/service marketing, inadequate sensitivity to customer satisfaction, and inability to communicate uniqueness. As regards the imperative nature of product and service marketing, the disagreement was occasioned in the area of the extent to which product and service marketing is necessary within the Kuwaiti Islamic banking environment.\r\nThe affiliation that this question of product marketing has with innovation is undeniable, and i t is likely that disagreement stems from the fact that persons place a higher priority on innovation. Products must be created before they can be marketed after all. However, it appears to be problematic that even some institutions within the Kuwaiti Islamic banking sector do not place importance upon marketing, as this schema is precisely the method through which customers become aware of the services that any bank has to offer.\r\nThose who consider marketing to be of high importance understand that customer ignorance can have a damaging effect on the viability of a financial institution. miss of knowledge prompts potential consumers to ignore the services available, and business that might otherwise be gained is lost. Marketing allows customers to become aware of these services, and it is consumer centred as it promotes the benefits that might accrue to the customer as a result of using that service. 5. 4. 2. Divergence on the Question of Sensitivity to Customer Satisfaction\ r\nThe other area of dissimilarity deals with inadequate sensitivity to customer satisfaction. While the theory explored highlights this as an important area, it was surprise to note that some of the respondents considered the challenge to be of high importance. Evidently, the Kuwaiti banking personnel do comprehend the gravity of the competition that exists between Shariah and non-Shariah financial institutions. The fact that non-Shariah banks are set up so that losses to the institution are minimized at the expense of the customer leaves such banks in a relatively more secure position.\r\nThe necessity of being sensitive to the satisfaction of clients becomes that more important, as the relationship with the customer is possibly the area that offers an Islamic bank the greatest amount of competitive advantage. In order that consumers who may not be completely loyal to Shariah be induced to work with the institution (or to continue as a customer), the satisfaction of these persons (on whom the institution rests) must be ascertained and guaranteed.\r\nMarketing plays a big role in this, but before marketing can take place banking professionals must become aware of the areas that would most satisfy these consumers. It must also be aware of areas in which satisfaction is not being granted (whether within Islamic banks or the alternative banking system) and changes made promptly to improve these conditions. 5. 4. 3. Divergence on the Issue of Communicating uniqueness By far, the divergence of opinions between theory and practice as it regards the inability to communicate uniqueness is most surprising.\r\nThe reason for this is that it is precisely the uniqueness of the Islamic bank that defines the necessity for all other areas of this research. Its compliance with Shariah principles is what sets it apart from the competition, and it is this that also contributes to the difficulties as well as the advantages of the Islamic bank. Though challenges of identifying the Islamic banks’ uniqueness is acknowledged by the majority of banking professionals surveyed, the minimal appreciation of its importance within Kuwait is of great concern for said(prenominal) reasons.\r\nThe idea of uniqueness also reverts to the question of marketing. Though it does make sense that institutions that give the sack marketing somewhat would also switch off the importance of product differentiation, this lack of intimacy on the part of so many managers gives cause for alarm. It gives cause for the expression of concerns about the future of Islamic financial institutions in Kuwait if no effort is made at demonstrating how their services differ from the traditional services of the competition (Khan & Ahmed, 2001).\r\n5. 5. reflection factor on personal learning As a student who is relatively new at empirical research, I found the experience of collecting and ordering data very intriguing. It was very interesting to find out that the research carried out during the literature review demonstrated that though different researchers had essentially been studying the same phenomenon in different countries, the ideas extracted were able to come together to form a cohesive body of knowledge.\r\nThis became even more evident when the empirical data collected within this research began intent support in the literature and theoretical concepts identified within the literature review. As it regards Islamic and Kuwaiti banking, I in condition(p) that the Shariah system of banking in many ways embodied ideas that exist for the melioration of the financial condition of the country which it serves.\r\nIt caters to the needs of the institution, yet appears to be much more client centred than traditional banking. It also seems to favour the growth of the economy in its determination that financial transactions be done expressly in conjunction with the creation of real and tangible wealth. Finance is therefore not divorced from real work an d real investment or enterprise. I also learned that Islamic banking does face many challenges, however.\r\n'