A COMPARISON BETWEEN ISLAMIC AND CONVENTIONAL HOME FINANCING IN KUWAIT: CLIENT PERCEPTIONS OF THE FACILITES OFFERED BY THE NATIONAL BANK OF KUWAIT AND KUWAIT FINANCE HOUSE

Abstract

This study determines the awareness of the Islamic home inance products compared with conventional home financing, as well as clients’ perceptions of home financing, with the National Bank of Kuwait represented as a traditional Bank and the Kuwait Finance House as an example of an Islamic Bank. This comparison is important since it is new in this area and ives the clients an overview about available home finance. In addition, new students can benefit from this study to build on and start from where I finished.

The empirical research was conducted utilizing both quantitative and qualitative methods, as well as a case study and interviews, which is a method known as the triangulation technique. Questionnaires were distributed to 200 clients who had applied for home financing from both banks, using 100 clients from each bank. To sum up, it can be argued that an examination of Islamic banking as symbolized by the Kuwait Finance House has revealed that this type of financial institution has experienced a boom and has been successful in establishing itself as a practical substitute to conventional banking, in spite of what have been seen as authoritarian and nonflexible rules and regulations governing the activities of this type of financial institution. Islamic banks have experienced a boom and have been successful in developing alternative methods for attracting and utilizing funds in money-making outlets, regardless of the fact that they are comparative beginners in the field. Future prospects for the banks are even more promising, as experience is likely to improve the capability of these institutions to compete and to improve their performance.