Bank-Based and Market-Based Financial Systems Structure and Economic Growth in Saudi Arabia

(Pages 2847-2854)

Mamdouh Naser Alsalamat1,* and Jumah Ahmad. Alzyadat2
1Part time faculty member. Arab Open University, Riyadh- Saudi Arabia.
2Department of Finance and Banking, College of Business Administration, Dar Aluloom University, Riyadh-Saudi Arabia.


The financial systems structure combines bank-based and market-based intermediation. But the mix of financial structure between the two intermediation channels varies across countries. This paper examines how the financial system structure, whether banking or market-oriented, affects economic growth in Saudi Arabia, using an ARDL testing approach. The empirical results of this study show that while market-based financial development has a positive impact on economic growth in Saudi Arabia, bank-based financial development has an unclear impact and statistically unacceptable, which requires studying the role of banks in Saudi economic growth more deeply. That is, the results of the study support market-based financial development perspectives. Therefore, the study recommends the necessity of moving forward with policies to develop the structure of the financial sector structure in Saudi Arabia in a way that enhances real economic growth.


Financial structure, market-based financial development, market-based financial development, Saudi Arabia.

How to Cite:

Mamdouh Naser Alsalamat and Jumah Ahmad. Alzyadat. Bank-Based and Market-Based Financial Systems Structure and Economic Growth in Saudi Arabia. [ref]: vol.21.2023. available at:

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