BANKING CONTROL LAW IN Saudi Arabia - lacks & Development

Introduction

The Kingdom of Saudi Arabia is one of the most economically sound nations of the Middle Eastern region . It is oil rich and has relatively robust banking system . Its laws have been rather progressive over the past few years . However excessive government interference , Islamic laws and too many amendments may have prevented the banking system form achieving its full potential

Laws in the Saudi Arabian banking sector

The official religion in Saudi Arabia is Islam and all the citizens within this country are required to prescribe to this faith

Additionally , the latter religion also forms the basis of the legal code within this country thus implying that most of foreign investors may have a difficult time trying to carry out business within such a country (Library of Congress , 2008

The banking sector industry is highly stable . This is partly because it is often regulated by the Saudi Arabia Monetary Fund abbreviated as SAMA . Those banks that conform to Islamic law are not expected to pay their respective depositors for holding their money for them because they prohibit interest rates . Additionally , a number of banks benefit from high amounts of oil revenues , consequently , they are in a position to take up a lot of profits . As of the financial year 2006 , Saudi Banks boasted of revenue amounting to one hundred and thirty eight billion US dollars . In Saudi Arabia , no bank has ever been passed of as being a failed one . Also , the latter country only has about nine percent...