Evaluating the efficiency of Saudi commercial banks using data development analysis

This paper applies data development analysis to investigate the performance of the Saudi commercial banking industry. The technical efficiency of Saudi banks for the year 2002 is evaluated and compared with world mean efficiency scores. The study reveals that the mean efficiency score of Saudi commercial banks compares very well with the world mean efficiency scores. The study recommends that Saudi banks should continue their efforts of adapting new technologies and providing more services in order to sustain competitive advantages as Saudi Arabia continues to deregulate the banking industry.banking industry; data envelopment analysis; DEA; commercial banks; technical efficiency; financial services; Saudi Arabia.