This study aims to determine the effect of financial leasing practices on the performance of Islamic banks' credit portfolios in the GCC countries. Based on the United Arab Emirates' experience, the study's problem was whether leases that end with ownership had an effect on Islamic banks' credit portfolio performance. Two hypotheses were constructed to quantify this effect, and the data was analyzed using the PLS program to ascertain the relationship between the variables and the field study's effects. According to the study's findings, Islamic banks in the GCC and the UAE comply with Islamic Sharia law when it comes to real estate leases that terminate with ownership. In the financial statements of Islamic banks in the GCC, particularly in the UAE, leases that terminate with ownership are treated accounting-wise. Lastly, the report suggested that Islamic banks in the United Arab Emirates and the GCC implement an accounting structure that facilitates leases that terminate with ownership.