Proceedings of 11th Asian Business Research Conference 26-27 December, 2014, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-68-9 Jordanian National Banks and Their Foreign Peer: Efficiency Comparative Approach Jamal Al-Khasawneh and Mohammed Z. Shariff Competition from over seas by well-established foreign banks became part of the banking sectors that plays a positive role in economic growth. They had increased in the size and the number and have significant role in emerging economies in recent years. This paper aims to evaluate the efficiency of foreign banks comparatively to conventional banks in Jordan where both types of banks are operating side by side. The non-parametric Data Envelopment Analysis (DEA) is used to investigate the cost and revenue efficiency of Islamic and conventional banks in Jordan over the period from 2000 to 2007. The results show that foreign banks have more cost efficiency and less revenue efficiency than national banks. These findings can be justified by the small size of foreign banks, and to their ability to invest their funds in foreign financial instruments that are less risky and provide fixed income making foreign banks facing less challenging investment avenues. _________________________________________________________________________ Dr. Jamal Al-Khasawneh, Gulf University for Science and Technology, Kuwait. Email: al-khasawneh.j@Gust.edu.kw Dr. Mohammed Z. Shariff, Gulf University for Science and Technology, Kuwait. Email: shariff.m@gust.edu.kw