Weak Performance of Libyan Foreign Bank versus Dubai Islamic Bank

Amidst escalating economic challenges, the performance and financial results of banks are garnering increasing attention. In this context, a comparison between the Libyan Foreign Bank and Dubai Islamic Bank highlights a clear gap in performance between the two.

Dubai Islamic Bank presents bright financial results during the first quarter of 2024, with its profits rising by 11% compared to the same period of the previous year, reaching 1.66 billion dirhams, reflecting a noticeable improvement in its financial performance.

Conversely, the Libyan Foreign Bank faces significant challenges in its performance, with its annual figures for 2022 appearing disappointing compared to its counterpart in Dubai. Despite facing tough conditions, it exhibits weak growth in profits, with annual net profits reaching 285 million US dollars, compared to 455 million US dollars for the first quarter of Dubai Islamic Bank, indicating a clear disparity in performance between the two sides.

Despite its long history and presence in more than 23 countries across three continents, the Libyan Foreign Bank faces significant challenges negatively impacting its position and performance in the global banking arena.

While the bank boasts a wide-ranging customer base and an authorized capital of up to 8.7 billion US dollars, recent financial figures reveal lackluster performance in the global market. During the financial year 2022, the bank’s profits were approximately 285 million US dollars, a figure that appears dismal compared to its peers in the global arena.

These figures raise numerous questions about the reasons behind the deteriorating performance of the Libyan Foreign Bank amid a global banking environment witnessing rapid changes and multiple challenges. Are there issues in asset management? Does the bank’s infrastructure suffer from deficiencies in updating and development? Or are there external factors affecting the bank’s performance?

While Dubai Islamic Bank appears to steadily progress towards achieving positive results and increasing profits with a distinguished performance and strong strategy, the Libyan Foreign Bank continues to face significant challenges hindering its progress and curtailing its success in the global arena. A comprehensive reform strategy is required to improve its financial situation.

This reality calls upon bank officials to reconsider their strategies and policies to improve their performance and maintain their position in the global market, which requires continuous adaptation to economic and banking changes and transformations.

However, the lingering question remains: What are the factors behind this significant performance gap? Is it attributable to banking policies or the ability to leverage emerging opportunities in the global market? These questions necessitate further analysis and study to understand the roots of this gap and the challenges facing both mentioned banks.