摘要：All intangible assets and various human-centred and the intellectual property rights (IPR) of
organizations are considered as Intellectual Capital (IC). It includes all nonmonetary and nonphysical resources that
are fully or partially controlled by the organization and contribute to the organization`s value creation. Since
conventional factors of production are increasingly being replaced by intellectual assets, IC is now being increasingly
recognized as the most valuable resource, which can provide the required impetus to take on the competition. Through
appropriate management of IC, it is possible to enhance the earning capability, sustain the value and help the
achievement of organizational goals. Organisations that manage IC would acquire the required competitive advantage
and superior business performance in the current volatile and uncertain market. This study was conducted to
investigate the position of IC of Saudi banks. Empirical evidence exists to suggest that efficient utilization of IC can
contribute towards the success of the banking industry. Objectives of the study included finding the value of IC of the
Saudi banking industry and examine the performance of Islamic banks. Two regression models were used to achieve
the objectives of the study. The models examined the relationships between Return on equity (ROE) and Return on
total assets (ROA) and the aggregate measure of IC. It also examined the different components like Human capital
efficiency (HCE), the Capital employed efficiency (CEE), and Structural capital efficiency (SCE). The present study
has thus helped in presenting some interesting findings of the IC of Saudi banks. It was observed that Saudi banks
are fairly efficient and has generated the required value from the component of Human capital (HC) than other capital
elements. Drastic improvement was evident during recent years, reflecting the cues about the stability evident globally
in the industry. Overall it can be concluded that Saudi banks, especially the Shariah-compliant ones, are efficient in
generating value from its IC. A comparison between Saudi banks, as well as Islamic banks and those in other countries
where banking operations are not done as per Shari’ah rules, is suggested as it is sure to bring in interesting results.
