Thursday, May 9, 2019
The financial sector in Saudi Arabia Essay Example | Topics and Well Written Essays - 1000 words - 1
The pecuniary sector in Saudi Arabia - Essay ExampleTheoretically, there are different types of support form followed by different countries. These financing systems are aimed to help the borrower to gene outrank the required funds. These systems also help the political sympathies of the ground to perform their various economical activities, efficiently. The efficient management of various economic activities of a country such as construction of building, houses and other infrastructure, accomplishment of all the basic necessities of residents of that country like education, medical exam facilities, employment, etc, production, trading in international market, etc. is the indicators of the prosperity of the country. In theoretical aspects, the conventional loan is a sort of a traditional mortgage loan which is provided by banks, credits unions, financial institutions and local property lenders. The interest rate for these types of loans is set by money lenders as per their own terms and conditions. This interest rate is relatively lofty for taking maximum benefits in this type of financing system. There is need of high down payments and mortgage or security for these types of loan. There are several differences in the conventional.Where as Murahaba financing is also a kind of financing which is known as the cost-plus financing. This financing system is one of the close to important systems prevailing in various Islamic countries. There is no additional interest is supercharged in this type of dealing (International Monetary Fund 2006).