المـجــــلــــة العـــلمـــيـــة المـسـتـقـبــــل الاقــتــصــــــادي
Volume 10, Numéro 1, Pages 549-563
2022-12-30

Islamic Banking And Its Role On Financing Investments, An Econometric Study Case Of Saudi Arabia

Authors : Si Mohammed Feyza . Kara Brahim .

Abstract

This study aims to estimate and test the role of Islamic banking in financing investment, case of the Saudi economy, using quarterly data during the period from the fourth quarter of 2013 to the second quarter of 2021. Some forms of Islamic financing have also been implemented, such as musharak financing, Murabaha, and financing with Islamic Sukuk The least squares approach was used to estimate the regression model. the results obtained confirm the positive relationship between the independent variables and the investment, Also, through the autoregressive vector model VAR , it was confirmed that there is a causal relationship between Islamic finance and investment as a dependent variable The Variance decompositions test also confirmed that Murabaha financing is the most important Endogenous variable in explaining the variance of investment in the long term

Keywords

Islamic banking, ; investment ; autoregressive vector model ; causalrelationship ; Variance decompositions