The Role of the Saudi Banking Sector in Economic Development Under Vision 2030

Abstract

This study aims to determine the role of Saudi banking sector in economic development under Vision 2030. The population targeted for the study encompasses the real Kingdom of Saudi Arabia gross domestic product (GDP) from 2009 to 2018, and data entry point on all banking institution assets, liquid liabilities, and deposits. The number of commercial banks operating in Saudi Arabia stood at 26 (25 operating and 1 licensed) in 2017. To achieve the main purpose of the study, secondary data are collected and utilized from the published sources. The data collected and checked for completeness and consistency of the research. The data are analyzed by using SPSS such as Pearson correlation and ANOVA, as well as other quantitative techniques in SPSS. The results of the study proved that there is a negative correlation relationship between the Saudi banking sector as independent variable (assets, deposits, liquid liabilities) and economic development (GDP) as dependent variable. Moreover, there was a high positive correlation between the independent variables of the Saudi banking sector. The test of one-way ANOVA analysis proved that the first hypothesis was rejected, the second hypothesis was accepted, and the third hypothesis was rejected. It was also found that, since the implementation of the Saudi Vision 2030 in 2016, it has been observed despite the fact that the GDP has increased at the same time the contribution of the Saudi banking sector in GDP has increased.