ANALYSIS OF PERFORMANCE OF ISLAMIC BANKS IN SAUDI ARABIA

Abstract

Islamic finance has emerged as an effective tool for financing development worldwide, including in non-Muslim countries. Major financial markets are discovering solid evidence that Islamic finance has already been mainstreamed within the global financial system and that it has the potential to help address the challenges of ending extreme poverty and boosting shared prosperity. The aim of this research is to investigate analyzing the performance of Islamic banks in Saudi Arabia. The research performed quantitative method in which 5 banks (Alinma, Aljazira, Alrajhi, Albilad, and Saudi Investment Bank) were taken in for analysis and ROA and ROE were performed. The analyses information for this study is obtained from the Tadawul Stock Exchange knowing their total assets and liabilities. The results were different for each bank and hence their performance was varying in comparison to each other. This study shows that Alrajhi Bank has performed better than other Islamic banks in Saudi Arabia