Exploring Murabaha Financing at Al Rajhi Bank: A Key Indicator of Growth in Saudi Arabia’s Islamic Banking Sector

Abstract

This study analyzed the applications of Murabaha financing in Al Rajhi Bank: its significance for growth in the Saudi Islamic banking sector during the pe-riod between 2016 and 2022. To achieve the objectives of the study, the de-scriptive analytical approach was used through a case study of the bank. Sec-ondary data was collected from annual financial reports. The data were ana-lyzed using the SPSS statistical analysis program to measure the size and growth of the Murabaha portfolio. Then, its relationship to revenues and prof-its was analyzed. The results showed an increase in the size of Murabaha by approximately 50% and showed a strong correlation with the dependent varia-bles. The study concluded that the Murabaha transaction contributed signifi-cantly to the growth of Al Rajhi Bank’s business and enhanced its efficiency during the period under study.