Islamic banks and feature challenges with special reference to the Yemeni Central Bank economic policy

Abstract

This article aims to identify the most important obstacles that have been faced by Islamic banks, limiting their activities, domains, and expansion. The study employs the statistical and descriptive approach. It includes an introduction and two sections. Section 1 discusses these challenges. Section 2 addresses the  priorities and trends of the economic policy in the development field in Yemen. the study concludes that Islamic banks  prefer the use of financial and investment  procedure that does not require effort, follow-up and supervision, similar, to some extent, to those of Riba-based banks where financing with profits is more than 65% of the  total financing  that would in turn weaken these banks’ major role.