Purpose This paper aims to measure the stability extent of the banking sector in Saudi Arabia, including Islamic and conventional banks (CBs), using quarterly data. Design/methodology/approach The paper uses seemingly unrelated regressions to estimate the determinants of the z-score. Findings The panel data model shows that Islamic banks (IBs) reduce the financial stability index relatively; meanwhile, they contribute efficiently to enhance the financial stability through the diversification of their assets. The Saudi banking sector exhibits strong concentration affecting the financial stability negatively. Research limitations/implications The paper’s topic can be extended to cover the recent period. Practical implications The limited presence of IBs in the Saudi banking sector jeopardizes any effort to improve the financial stability. Social implications By attracting more clients, IBs would contribute more to the financial stability in the Saudi economy. Also, the monetary authority has to expand the share of IBs in the financial system at least 50-50 compared to CBs. Originality/value The z-score is mostly analyzed with yearly data; in this paper we use quarterly data to describe at infra-annual frequency the variability of the z-score index. Also, we consider in detail the statistical properties of the banks’ data.

Export strategies are the means by which the country can dispose of its domestic production surpluses to bridge successive deficits in national balances of payments and achieve economic growth. These strategies are of particular importance to the economy of Saudi Arabia, as it has opted in the last decade to diversify its economy and migrate gradually away from an economy heavily reliant on oil exports. Given the importance of diversifying the economy, this study aims to examine the relationship between exports and economic growth in the Saudi Arabian economy. The multivariate Granger Causality Test and cointegration, which is the most common model, was used in examining the short-term and long-term patterns of exports, non-oil exports, GDP, GDP per capita, and government spending from 1991 to 2016. The findings support a long-standing connection involving Saudi exports and the country’s rate of economic expansion. Unidirectional causality exists between exports, non-oil exports, and economic growth expansion, which means the growth rate rises as exports grow. In addition, the findings revealed the presence of bidirectional causality between the variables. Indeed, export promotion strategies are imperative to fulfill Saudi Arabia’s aspiration of robust and long-term economic growth. AcknowledgmentThe authors acknowledge the Deanship of Scientific Research at King Faisal University (KFU) in Saudi Arabia for the financial support provided under (Grant No. 186183).

No abstract

No abstract

No abstract