Customer Awareness and Satisfaction of Islamic Retail Products in Kuwait

Abstract

The market for Islamic banking has grown rapidly over the past few years, and this high growth is expected to continue for the near future in Kuwait Banking Industry. At the same time the competition market is being reshaped, with more Islamic financial services institutions than before entering the market. Within this competitive environment customers have been identified as the most important foundational pillar for business sustainability.  Using a questionnaire distributed to 150 Kuwaiti client deals with Islamic banks, the study aimed to examine the factors affecting Kuwaiti customers in the choice of the Islamic Bank, which they deal with, and to study the level of awareness customers have on the Islamic principles that stand behind each retail service provided by the Kuwaiti Islamic Banks. The study also examined the level of satisfaction of services provided by these banks. The study found the twenty three factors investigated by the study were very important in choosing Islamic banks in Kuwait. One Islamic factor only (Bank reputation in regards of abidance with Sharia principles) was one of the first five factors but it took last place. This mean that Kuwaiti customers seek more than abidance by sharia low, they want the same things customers of traditional banks requests from their bank. Kuwaiti customers are aware of Tawaroq and Islamic credit cards, but they aren’t fully aware of Mudarabah, Murabaha, Musharaka and Ijara. The study also found that in spite of a relatively high degree of satisfaction by Kuwaiti customers in general, they are still not fully satisfied with some areas related to Kuwaiti Islamic banks including adherence to Shariah principles.

Keywords: Satisfaction, Customer Awareness, Islamic Banks, Islamic Shariah, Mudarabah, Murabaha, Musharaka and Ijara.