Investment Accounts Practice in Oman’s Islamic Banks: A Comparative Study With AAOIFI’s Standards

Abstract

Research Questions/Issue: What is the current practice of PSIAs in IBWs in Oman compared to AAOIFI’s standards? Purpose:The main purpose of this research is to reveal the PSIAs practice in Oman’s IBWs in comparison with AAOIFI’s standards, particularly concerning the sharia and disclosure issues. Research Methodology: With the purpose of studying this research issue, the researcher gathered the relevant data of two full-fledged Islamic banks and five Islamic windows located in Oman, using their annual reports and published contract in the year 2021. Therefore, a combination of content and ratio analysis,and comparative approach were used to investigate the issue of research.

Research Findings/Insights: The main findings found in this research generally that there were positive disclosure practices regarding the equity and assets distribution . However, there was a lack of information concerning the kind of contractual relationship that links between the different stakeholders involved in PSIAs.In addition, the practice of PSIAs was found to big extent compatible with AAOIFI’s standards. Theoretical/Academic Implications: the found results to some extent bridge the gap between the theory and practice in the issue of PSIAs, providing some suggestions to reduce this gap between the two sides. Keywords: IBWs in Oman,Profit Share Investment Accounts, AAOIFI’s Standards, Islamic banks, GCC countries