that banks with high foreign ownership will pay a higher zakat rate than national banks.
Based on the results of this report, the head of research at Al-Rajhi Capital, Mazen Al-Sudairy, stated that the impact is not significant on the banks, as the Kingdom has witnessed a few rises for banks with foreign ownership, For example, SABB bank increased from 12.7% to 14.1%, but also banks that do not have a foreign partner, and the tax rate is less than 10%, reached 10%.
Al-Sudairy continues, that the cases that have witnessed a rise are considered limited, and most of them were Bank Al-Jazira from 7% to 10.7%, but as the average impact is not significant, and the impact on the ability Banks to pay dividends, and banks will have the ability to maintain payment of dividends and the amount of their profits.
As for the benefits, we note that the return on average bank assets did not rise by the size of the rise in cyber interest, as it increased as an average of 1.1% while from 2015 the fourth quarter rose Cyber 1.7% to average. I suspect this is because the time period banks take to lend to them may not keep pace with the change in interest rates and there is a constant interest rate.
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