Evaluating loan repayment in the Saudi Arabian agricultural sector by means of a farm credit interdependent system (Ph.D. Dissertation)

Saudi Arabia has taken initiatives toward diversifying the economy and steering away from a dependence on oil as the main revenue source. The Saudi Arabian Agricultural Bank (SAAB) was created in 1963 to provide farm operators with interest free credit to purchase equipment and further develop production in order to improve their income. Despite operating for sixteen years, SAAB has fallen short of its goal of assisting a majority of farm operators. The inability to reach large numbers of farm operators and the high delinquency rate are caused by bottlenecks in administering credit and lack of appropriate means of loan evaluation within SAAB. This study evaluates non-repayment of agricultural production loans and develops alternative lending policies and procedures for SAAB that would improve the effectiveness of credit distribution and loan repayment.