The concept of green banking and its applicability in the banking sector of the Kingdom of Saudi Arabia

Abstract

The need for green banking and environmentally friendly practices has become urgent, in order to protect the environment from resource and land problems affecting the environment, as well as to halt the consequences of the depletion of natural resources. As many practices have already been adopted in many countries around the world hence the problem of the research on the possibility of applying green banking in Saudi Arabia. The study discussion has shown that the kingdom of Saudi Arabia has succeeded in making steady progress towards the establishment of an inclusive financial sector and a non-monetary economy by adopting several initiatives, and the role of the financial sector in supporting the goals of the initiatives is through the expansion of the credit base and the development of new tools and services to benefit from sustainable climate change investment opportunities. The study concluded that although there were green initiatives in the financial and banking sectors adopted by Saudi Arabia, it is still in the early stages of development and they are fraught with obstacles that may limit their application. However, it is expected to increase in the near future in order to achieve the goals of Vision 2030.