مجلة الرسالة للدراسات والبحوث الإنسانية
Volume 9, Numéro 2, Pages 112-126
2024-06-21

Assessing The Economic Influence Of Islamic Finance In Saudi Arabia: An In-depth Econometric Analysis (q4 2013 - Q2 2022

Authors : Bouabdellah Mohammed Amine . Rekabi Saddam . Iddir Rania .

Abstract

This paper examines the complex correlation between Islamic financing and economic development in Saudi Arabia from Q4 2013 to Q2 2022. The study used quarterly data to analyze financing dynamics in Islamic banking and its impact on economic growth by employing the ARDL model. The research first confirms the stationarity of the time series data using the Augmented Dickey-Fuller test. The following ARDL Bounds Test demonstrates a long-term equilibrium link between Islamic finance and economic advancement. The empirical evidence suggests that Islamic financing has a significant and beneficial effect on the long-term economic development of Saudi Arabia. More precisely, there is a clear correlation between a 1% increase in Islamic finance and a 1.16% increase in long-term economic growth.

Keywords

Autoregressive Distributed Lag (ARDL) Model ; Econometric Analysis ; Economic Growth ; Islamic Finance ; Saudi Arabia