**1. Introduction**

Islamic banks play major role as a financial intermediaries in the economy through mobilizing saving from surplus units, then handle them to deficit units which are need capital to produce goods and services in the economy. Thus they are contributing to wealth distribution by effective allocating of financial resources. The Literature Review have evaluated the efficiency of Islamic banks performance as compare their counterpart conventional banks performance .there are some studies investigate the impact of international financial crisis 2008 on Islamic banks, they had demonstrated that Islamic banks were stable and highly governance by local supervisory authorities, in order to avoid the same mistakes of American banks. Therefore, early identification of weak banks ranks is very important to monitory supervisors. As we know the majority of the Gulf Council Countries (GCC) nations are Muslims, so that Islamic finance is very important field in these countries should be study and develop as a result of this perception there are some studies have conducted in Islamic banks fields in GCC, such as [1, 2]

(Vijaya Kumar and Hameedah Sayani, 2015), but they have used distress models like Z score, CAMEL, to evaluate the performances of Islamic banks as compare to conventional banks in GCC. So that there is no clear consensus about the relation between CAMEL dimensions ratios and Z score of Islamic bank,this gab is filled by this study There are twenty Full-fledge Islamic banks In Gulf Council Countries (GCC). The oldest one is Qatar International Islamic Bank (QIIB) in Qatar, which was establish in 1956, followed by Al Rajhi Bank established in 1957 in Saudi Arabia, the youngest one is Bank Nizwa in Oman established in 2013. See (**Tables 1** and **2**).

The researcher collects financial data from banks sites, and General Economic development indicators (GDP, Inflation rate, Exchange rate) for each country of GCC from World Bank site. Then all financial data with local currency was converted in to dollar, even exchange rate. After that Z score is calculated for each bank within the study period and it regressed with independent variables including CAMEL ratios as internal factors of the studied banks, and GDP, inflation rate and exchange rate as external factors. The results of multiple linear regression show the best ratios that can be used as indicators of CAMEL Dimensions ratio.


**2. Research design**

score as a soundness of Islamic banks.

*Source the researcher from banks sites information.*

*Establishment date of Islamic banks in GCC.*

There is no clear consensus in previous studies on GCC, which investigated the impact of the CMELS model ratios as internal factors of the bank on Z score as soundness indicator. Also there is no clear consensus in previous studies on GCC about impact of GDP, Inflation rate,exchange rate as external economic factors on Z

**S Bank name Establishment date Age** Qatar International Islamic Bank (QIIB) 1956 64 Al Rajhi Bank 1957 63 Aljazeera Bank 1975 45 Dubai Islamic Bank (DIB) 1975 45 Emirates Islamic bank 1975 45 Sharjah Islamic bank 1976 44 Kuwait Finance house 1977 43 Bahrain Islamic Bank (BISB) 1979 41 Arabic Bank Corporation (Bank ABC) 1980 40 Qatar Islamic Bank (QIsB) 1982 38 Abu Dhabi Islamic Bank (ADIB) 1997 23 Boubyan Bank 2004 16 Bank Albilad 2004 16 Alinma Bank 2006 14 Al Salam Bank 2006 14 Masraf Al Rayan 2006 14 Baraw Bank 2007 13 Warba Bank 2009 11 Alizz Islamic Bank 2012 8 Bank Nizwa 2013 7

*Determinants of Islamic Banks Distress in Gulf Council Countries (GCC)*

*DOI: http://dx.doi.org/10.5772/intechopen.95028*

The main objective of this study is to fill the gap in selecting the best ratios of

The research follows survey method to search sample consist of five full-fledge Islamic banks worked in GCC as population. But each a selected bank its age less

CAMEL Dimensions indicators, that can measure bank's soundness.

**2.1 Problem**

**Table 2.**

**2.2 Objectives**

**2.3 Methodology**

**303**

## **Table 1.**

*Distribution of Islamic banks over six countries.*

