The banking sector is booming in Saudi Arabia thanks to a growing economy, expanding consumer lending and increasing market confidence. While banks apply technological innovation and extend their product lines, many, including Samba Financial Group, are turning toward Islamic or non-conventional finance in response to growing customer demand.

More and more clients, both corporate and private, are opting to use Islamic banking products. Based on the notion that risks are to be shared as well as profits, Islamic banking does not offer interest but returns on investments. Banks in Saudi Arabia have benefited for many years from the tradition of non-interest bearing deposits, essentially Islamic and accounting for more than 40% of all deposits. According to the nation’s bankers, around 75% of the retail lending market already functions as Shari’ah-compliant.

In light of this trend, Samba has focused strongly on providing new Islamic banking products and services, all carefully reviewed and approved by the bank’s own Shari’ah Committee, made up of accredited Islamic scholars. The bank offers private customers Islamic creditcards, car finance, personal finance and current accounts under the ‘Al-Khair’ brand name. For corporate clients, Samba offers trade financing, working capital financing, leasing, project finance, cost-plus financing and Islamic investment accounts.

In 2004, Samba opened its first Islamic banking branch in Makkah, the birthplace of Islam. Further branches have been opened and more are in the pipeline as Samba aims to establish a network of Islamic banking facilities throughout the kingdom.