AN ESSAY ON RETURNS TO SCALE OF BANKS IN UAE

Over the last decade, Islamic banking has experienced global growth rates of 10-15 percent per annum, and has been moving into an increasing number of conventional financial systems at such a rapid pace that Islamic financial institutions are present today in over 51 countries. This study aims to show the significance of the banking industry in the economic sector and to understand the concepts of returns to scale and its applications in the banking industry. The efficiency and productivity of different banks in UAE is measured using this method of returns to scale for the last three years.