ECURITIZATION OF INTERNAL DEBTS WITH REFERENCE TO SAUDI ARABIA

Abstract

Securitization of debts is considered as a modern financial instrument and one of the activities which is closely linked to the stock market. This activity has become especially prominent as a phenomenon in the 1980s of last century in the United States as several US banks have endeavored and tended to securitize their debts. Although securitization is a modern idea in the international financing economies, it has become a phenomenon imposing itself on the stock markets and its effects spread over the fiscal and monetary policies either at the domestic level or the international one, a matter which pays the attention to investigate into this phenomenon and define its advantages and disadvantages. The research aims to determine and define the concept of securitization as a modern phenomenon through an overview of its development, motivations, techniques and types. In addition, the research shows the main steps in the path of securitizing debts and clarifies the advantages and disadvantages resulted from the process of securitization. The research is based on the essential hypothesis that securitization is a modern phenomenon requires a long period of time for its possible implementation in the Arab banks. The research adopts the descriptive and analytical technique by describing and analyzing the securitization phenomenon as it is considered as one of the contemporary economic issues, which has a great importance at the levels of governments, companies and individuals? The research includes six parts besides the introduction. Finally, the research draws a number of concluded results and policy implications.