A Comparative Financial Analysis Between Islamic and Conventional Financial Institutions in Kuwait

This study evaluates the performance of Kuwaiti Islamic Financial Institutions (KIFIs) between 2000 and 2020 in the light of their conventional counterparts (KCFIs) using their daily stock prices. A causal-comparative research design was utilized to evaluate the performances before, during and after the 2007/08 financial crisis as well as during the COVID-19 pandemic. The study established that there was a statistically significant difference between their mean performances before the crisis. However, it did not establish a statistically significant difference between their performances during and after the crisis as well as during the COVID-19 pandemic. The results suggest that the Islamic indexes are highly screened; thus, becoming very close to socially responsible investment. The study is among the first ones to be conducted in Kuwaiti; hence, bridges a knowledge gap in Kuwaiti.