Islamic banking is an extending sector in the Saudi Arabia banking industry. It is a system of banking, agreeing with the principles of Islamic law (Shari’ah). It forbids usury, the collecting and charging of interest and trading in financial risk. The Kingdom of Saudi Arabia is the largest actor in terms of pool of funds in the international Islamic finance market. Saudi Arabia appeared as the largest market for Islamic banking in the GCC, with a total resource of fully-equipped Islamic banks reckoning for nearly 27.4 % of the district’s total Islamic banking.
Sukuk (Islamic bonds) are getting favor in Saudi Arabia because of their risk-free quality and are awaited to prosper further in the future. Even in recessionary times, Sukuk produced firmness to Saudi banking sector. Some of the vital factors behind the development of the Islamic banking in the area are strong government involvement, growing demand for Islamic products, and the access of innumerable new actors among others.
The current report, titled as “Saudi Arabia Banking Sector Outlook 2015”, spread across 60 pages examines the macroeconomic factors crucial to the banking industry together with their effect on the sector. The report also identifies vital players in the market and comprises their detailed trade characterization. Moreover, historical analysis of their accomplishments is also undertaken on the base of key financial proportions. Substructural development of ATMs, POS terminals, and branches of top 10 banks is thoroughly been covered. Besides, the report sheds light on the appearing industry trends, which are awaited to decide the future of the Kingdom’s banking sector. Estimate for key banking elements, such as loans, deposits etc. have been also introduced in the report to empower a better concept of the Saudi Arabian banking industry.
