The role of government regulations and policies on Islamic finance in the healthcare sector in KSA

Abstract

The research object to find out the impact of external borrowing that also obtained from Islamic Banking Institutions this extended research stands on the impact on financial performance in medical companies in the Kingdom of Saudi Arabia. The major objective of this research is to investigate and compare information and data on the role of external debts to improve medical performance in Saudi Arabia. A sample of 8 medical companies in the KSA. A multi-linear regression analysis has been done along 5 years from 2017 to 2021, included the financial ratios that represents the study variables, Independent variables are (Net Profit Ratio, Return of Assets Ratio (ROA), Return on Equity Ratio (ROE), dependent variables (Debt Ratio, Current Debt Ratio) and the There is a significant relationship between LB and firm’s ROA, ROE in study sample where R = 50.9% at a significant level less than 5%. There is a significant relationship between LB and firm’s ROE in study sample where R = 49.5% at a significant level less than 5%, and recommended to apply this type of models on the financial sector in KSA in the future.