Determinants of Profitability in Islamic Banks: The Kingdom of Saudi Arabia Market

Ali Saggay (), Mostafa Mahmoud Abdelsalam () and Rafik Jbir ()
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Ali Saggay: Faculty of Economics and Management of Nabeul, Carthage University
Mostafa Mahmoud Abdelsalam: College of Islamic Economics and Finance, Umm Al-Qura
Rafik Jbir: Umm Al-Qura University, College of Islamic Economics and Finance

A chapter in Data Analytics for Management, Banking and Finance, 2023, pp 307-317 from Springer

Abstract: Abstract This chapter examines the impact of bank characteristic in Islamic banks in the Kingdom of Saudi Arabia over the 2004–2019 period. In order to analyze the determinants of Islamic banking profitability in the Kingdom of Saudi Arabia, the panel autoregressive distributed lag (ARDL) method was used. The result of this chapter shows that total liquid assets (TLA) and rate of return on investment (ROI) is positively associated with profitability in Islamic banks at long run. The short-run estimation shows that capital adequacy ratio (CAR) and total liquid assets variables have a significant positive effect on return on assets index.

Keywords: Islamic banks; Saudi Arabia; Bank-specific variables; Business analytics; Panel ARDL (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-36570-6_14

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DOI: 10.1007/978-3-031-36570-6_14

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