Growth and Potential of Islamic Banking in GCC: The Saudi Arabia Experience

Abstract

Islamic banking in Saudi Arabia is gaining momentum day by day due to its political and economic conditions. This country is one of the pioneers in the field of Islamic banking in the world. But still Malaysia and United Arab Emirates are leading in the world as far as Islamic banking is concerned. The banking sector in Saudi Arabia is flexible which always encourages Islamic banking for implementation. The banks in Saudi Arabia are either fully Islamic or have Islamic banking windows and branches. Al Rajhi Bank of Saudi Arabia has created a history by becoming the safest Islamic banks in GCC. This paper has tried to highlight the present status of Islamic banking in Saudi Arabia and has also throne light on some important issues which indicate that it has a potential market in Saudi Arabia. The paper has also highlighted how Saudi Arabian banks will be totally Islamic in future.