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This study assessed the challenges and opportunities of expansion of Islamic banks in Ethiopia in case of commercial bank of Ethiopia Dire Dawa interest free branch. For sake of obtaining sufficient data, the researcher mainly used primary data that would be collected through open ended and close ended questioner from employees of commercial bank of Ethiopia Dire Dawa interest free branch. In addition to questioner, interview was conducted with branch manager of Dire Dawa interest free branch and higher officials of Islamic banks in the process of establishment. | Challenges and opportunities of expansion of islamic banks in ethiopia: Case of commercial bank of ethiopian dire dawa interest free branch
