Trends in Sector Wise Deployment of Credit by Commercial Banks in Saudi Arabia

Abstract

The State plays a significant role still in the development of economy of Kingdom of Saudi Arabia. Several strategies have been formulated and implemented to develop various sectors and to increase their contribution to accelerating the pace of economic growth, creating more job opportunities, diversifying the economic base, improving the investment climate with the objective of raising standard of living of the people. Commercial Banks are encouraged to participate in these developmental strategies of the government. In this paper an attempt is made to find out the trends in the sector wise deployment of funds by the commercial banks. The data has been analyzed through the application of statistical tools and certain statistical tests have been used to test the hypotheses. It was found that the commercial banks have in certain sectors failed to carry out objectives of the government in achieving the economic growth whereas in certain key segments they are carrying out the mission of the government.