Strategic situational impact on commercial banks in Saudi Arabia

Economy, government, technology, competition, culture, and demography are listed as the situational factors in this analysis that affect the banking industry in Saudi Arabia. Using questionnaire data obtained from 103 bankers who are members of six Saudi commercial banks, results reveal that culture and technology are viewed as less important than the economy and government regulation. Oil export is the one commodity the Saudi economy is most dependent on and the one most often characterized by continuous fluctuations. Given the rise of Islamic awareness, Westerns are advised to give greater credence to such issues as culture, demography, and technology in Saudi Arabia and the integration of these situational factors. Bankers would particularly benefit from the rise of Islamic awareness and an application of these factors to any analysis and decision they might make toward advancing their services in the Saudi economy.