Total Financing at Saudi Islamic Banks Sees a 19% Annual Increase Supported by Murabaha and Tawarruq Contracts

Saudi Islamic banks’ total financing saw a 19% annual increase prompted by Murabaha and Tawarruq contracts as of the 30th of September 2021. According to a monthly report published by the Saudi Central Bank (SAMA), the total financing provided by Saudi Islamic banks, up to the same date, had reached SAR 1.67 trillion (USD 444 billion).

Why it Matters?

Murabaha financing accounted for a 45% share of the total value of financing provided by Saudi Islamic banks in the third quarter of 2021 (3Q 2021), up from 38% in the same period last year. When compared to other financing modes, the value of Murabaha and Tawarruq contracts grew at the fastest annual rates at the end of 3Q 2021. The annual growth rate in total value of Murabaha contracts had increased to 40...