Technology

DECLARATION
I declare that this is my original work and has not been done or presented by anybody else for purposes of fulfilling a Masters Degree programme


DEDICATION
I wish to dedicate this project to my parents, lecturers, my siblings and friends for their unyielding support throughout my studies.


ACKNOWLEDGEMENT
I wish to thank my able supervisor  of  University,  Department for his support, guidance and effort towards the successful realization of this research project report.
I wholeheartedly appreciate  Universitys  Department for its invaluable support towards my research work.
I also feel obliged to acknowledge the effort of my friends and course mates for their punctual encouragement during the challenging moments of my research work.

God bless you all.

ABBREVIATIONS
ATM Automated Teller Machine
BCG Boston Consulting Group
CD Certificate of Deposit
EMV Europay, Mastercard, Visa
EFT Electronic Fund Transfer
EBPP Electronic Bill Presentment and Payment
GCC Gulf Cooperation Council
IT Information Technology
KSA Kingdom of Saudi Arabia
LLP Loan Loss Provisions
ME Middle East
ROA Rate on Assets
ROE Rate on Equity
SAABN Saudi Arabia Al-Rajhi Banking and Investment Corporation
SABB Saudi Arabia British Bank
SAMA Saudi Arabian Monetary Agency
SAMF Saudi Arabia Monetary Fund
SPAN Saudi Payments Network
SAR Saudi Arabias currency- the riyal
SARIE Saudi Arabian Riyal Interbank Express
SR Saudi Riyals
TAM Technology Acceptance Model
TMS Target Money Survey
UAE United Arabs Emirates
US United States
WTO World Trade Organization



ABSTRACT
The emerging technologies have undoubtedly changed the manner in which most of us run our daily activities. In the banking sector, banking technologies became the great leveler. Most of the banks now offer advanced banking technologies and customers are looking forward to the convenience and control these technologies offer to anyone, anywhere, anytime. The Kingdom of Saudi Arabia has not been left behind. Today, people in Saudi Arabia have access to banking services irrespective of their locality, amount of financial transactions and status in life. The banking technologies that are present in Saudi Arabia are electronic banking, mobile banking and phone banking. These technologies are supported by banking infrastructure set up by SAMA. While these technologies have provided sophistication to the otherwise mundane routines, customers expectations have also gone up thereby pushing banks to become more competitive and innovative.

To further study the relevance and effect of the advanced banking technologies in Saudi Arabia, this formal study had been undertaken. The purposes of this dissertation are 1) To show the effect of advanced banking technologies on enhancing banks service offerings in the Kingdom of Saudi Arabia (KSA), 2) To identify the effects of these advanced banking technologies to customer behavior, and3) To illustrate how the bank customer behavior influences banks investment in service channels.

1.1 Overview
The emergence of new technology and its consequent diffusion within the banking sector in Saudi Arabia has revitalized the banking services by increasing their efficiency, reliability and above all, credibility. As such, banks have been at the forefront to embrace emerging technologies in order to remain relevant among the increasingly technological society. This technology has again provided limitless channels through which many people can invest and monitor their transactions from the comfort of their homes and work places. In Saudi Arabia, the introduction of the internet banking and the phone banking has gone a long way in ensuring that customers are no longer subjected to cumbersome nature of traditional mode of banking. Many business people, both large and small scale, can easily transact their finances anytime unlike in the past when they had to operate within the banking hours.

From the customer perspective, advanced technology banking has brought with it many options insofar as accessing banking services is concerned. Through the phone, customers have access to their bank accounts and can command transactions directly through an automated banking system. These transactions include faster deposits and withdrawals, payment of bills, receiving payments and placing loan requests. Automated Teller Machines have enabled people in the Saudi Arabia to get access to their bank accounts even abroad through the current inventions. Customers behavior in Saudi Arabian banks has greatly been influenced by the availability of banking options. Customers want bank that call to task newer forms of technology that increase bank service accessibility and relatively cheaper charges. With time, the customer behavior has dictated what form of technology is to be embraced by the banks. Characteristically, customers appreciate technology whose accessibility procedures are not complicated and instead have user-friendly specifications.

             The counter issues prophesied by the Arabian business scholars about banking technologies revolve around the technical difficulties and the emerging perfection attitudes and beliefs of the Arabian e-banking users. The internet buyers put forward issues of security, governments rigid policies, consumer privacy and the commercial reputation as top agenda factors within the advanced technology in Saudi Arabia.   Considering the up-to-date condition of the advanced technology in the Middle East, Arabian banking decision givers must be fully persuaded on the giant benefits of this technology within the banking sector and the entire Saudi Arabian state at large.   In this regard, this study finds its data very confident enough to state  that the advanced technology has offered many benefits to the Saudi Arabian banking transaction area so far and thus had positively changed the behavior of its customers.

1.2 Hypotheses
The research hypotheses were
Advanced technology has rewarded Saudi Arabias banks with efficiency and reliability within the transaction services platform.
Customer behavior within the Saudi banks has greatly changed in the light of the advanced technology.
Advanced banking has stepped up service channel investments and sharpened the competitive edge of many Saudi Arabian banks.

1.3 Objectives of the study
The objectives of the study are
To understand the effects of advanced technology on transaction services of Saudi Arabias banks.
To understand how advanced technology has influenced customer culture and behavior in Saudi Arabia.
To find out the role of technology in investment of banks in Saudi Arabia in these advanced banking technologies.

1.4 Statement of the problem
As the advanced technology becomes deeply rooted and increasingly instrumental in Saudi Arabia, so does it affect the manner in which banks run their daily transaction services. The current introduction of ATMs, internet oriented and phone banking has created new and sophisticated forums for Saudi banks customers to enjoy banking services. Moreover, as such, customer behavior and culture has greatly changed compared to the traditional banking era. Regrettably, academic research work in Saudi Arabia, and the Middle East at large, has channeled its efforts to other areas of study that have long been exhausted, at the detriment of usage of advanced technology in Saudi banks. An informed study that will unravel the manner in which advanced technology has affected the Saudi banking sector and its customers has thus been necessitated. It is this call that this study was intended to answer and further provide at least a starting and a reference point for future studies.  As the research will prove at later stages of this report, there is a technically significant way in which advanced technology has influenced the transaction services of Saudi banks and their clienteles behavior and culture.

1.5 Significance of the study
     This study is very significant. As newer advanced technologys applications are created and are embraced within the Saudi Arabian banks, it follows that newer and more sophisticated virtual environments for business transactions have been created as we approach the 21st century. As a result, if business research work confines itself on the traditional environment of the banking sector, a very wide gap will be created between how banking transaction services are used in the virtual world and what we traditionally know about it.

        Such gap is already emerging. However, this study aims to enhance understanding on how advanced technology reveals itself in the Saudi Arabian banks transaction services and the customer behavior and culture. Furthermore, this study will analyze how the customers behavior triggered the banks to be more competitive and invest in these banking technologies and banking infrastructure.

1.6 Limitations of the study
It is worth pointing at this stage that this study foresaw the following challenges and limitations.
The study will not be able to study the usage of advanced technology (AT) in each of the Saudi Arabian banks because of its use of simplified research methodologies.
The sampling methods of this study may be biased since data will be  from most popular banks. 
1.7 Research Questions
          Though the aforementioned research objectives gave direction to the study, the following research questions came in handy in the collection of the dissertations data

What is the effect of advanced banking technologies in Saudi Arabia
How has this effect influenced behavior and belief of consumers making them more attracted to use the new channels in the place of traditional ones
What are the effects of new channels on consumer behavior and belief
How has the advanced banking technologies influenced on the banking strategy in investing in these new channels


PART 2 LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1 LITERATURE REVIEW
           This chapter presents the literature reviewed in the tune of topic and the academic business theory upon which this study is based. The literature review consists of various aspects of Saudi Arabia banking sector, banking technology infrastructure and the banking technologies present in Saudi Arabia. 

2.1.1 Background of banking industry in Saudi Arabia
The Kingdom of Saudi Arabia (KSA) has been known as homeland of the Arab people and of Islam. Saudi Arabian citizens have cultural identities principally those of Muslim and Arab, similar to those also in the Arabian Peninsula. The ruling dynasty, Al Saud, links the countrys name with the states cultural and geographic setting.

    The Saudi Arabian population in 2009 was about 22,000,000 with estimated 35 resident foreigners. Traditionally, men have more rights than women. There is also a strict gender segregation sanctioned by the state and society. Women are employed in girls schools and the womens sections of universities, social work and development programs for women, banks that cater to female clients, medicine and nursing for women, television and radio programming, and computer and library work.

Banks plays an important role in the financial system of the economy. Banking is an institution whose core function remains as it has always been  it puts deposit and investment (surplus fund) to work by lending, investing and financing to people needs or business. Banks are mere repository of this funds and are subject to policies and regulated by the government

Visiting banks just to know the account balance, standing in long queues for depositwithdrawal of the money was a normal and cumbersome scenario in the traditional banking era in Saudi Arabia, (Keeler, 2010). This was as hectic a job as it was time consuming for working people. With the computerization of the banking process, things did speed up. However, people still had to visit the branches to get their transactional needs met, (Ahmed, Zairi,  Alwabel, 2006).

2.1.2 Banking structure in Saudi Arabia
Country banking system in the Kingdom of Saudi Arabia is governed by Islamic law called Sharia. Islamic Banking is a unique banking activity that is different from the conventional banking of the world by many ways. It is based on Islamic law of economics and works in such a framework that follows certain rules and regulations, determined by various prominent Islamic scholars and economists. It prohibits usury, the collection of payment and interest(Riba-usury), trading in a financial risk(gambling)and investing in such business that are against the general principles of ethics(Haraam-Forbidden)-Khair Baksh

Banking in Middle East is largely influenced by the Islamic banking.  Saudi Arabia is the largest market of Islamic institution. The largest bank is located in Saudi Arabia Al-Rajhi Banking and Investment Corporation. The main focus in ways of operating the functions is Sharia compliant. This makes the foundation of the Islamic Banking, which is opening its wings in the Muslim as well as the non-Muslim countries. The fundamentals of the Islamic banking traditions are exclusion of interest and profit sharing or leasing without briefing the tangible assets
There was also a significant increase in the number of Islamic Banking that works on profitloss concept. The successful results from some of the Islamic banks attracted the Western investors to accept their banking practices that is popular in all Muslim countries including the following eleven Middle Eastern countries Saudi Arabia, Bahrain, Qatar, UAE, Oman, Kuwait, Iraq, Syria, Lebanon, Jordan, and Egypt.
     
In a report by Boston Consulting Group by Rima Ali Al Mashni, (2010), banks in Saudi Arabia have shown a 7 growth due to the increase of bank transactions and the stability of oil industry against the financial crisis going around the world. UAE and Kuwait banks slipped down by more than 20 and Oman banks dropped their profit by nearly 50. Saudi had become one of the largest and fastest growing economies in the terms of banking sector as it managed to survive the global financial crisis while continuously expanding their bank operations. 

As for the banking structure, the central regulatory body for the Saudi Arabia banks is Saudi Arabia Monetary Fund (SAMA). SAMA also regulates commercial banks, exchange dealers, and moneychangers and has acted as the depository for all government funds it paid out funds for purposes approved by the minister of finance and national economy.. It was established in 1952 and has the following functions
Issues national currency, the Saudi Riyal.
Acts as a banker to the government.
Supervises commercial banks.
Manages Kingdoms foreign exchange reserves.
Conducts monetary policy for promoting price and exchange rate stability.
6.   Promotes the growth and ensures the soundness of the financial system.

There are total of 21 banks the largest one being the National Commercial Bank controlled by the Saudi government. Their banking principle is hinged on Islamic cultures. The following is a list of major banks in Saudi Arabia
The National Commercial Bank - First bank established in Saudi Arabia operates more than 250 branches across the country including more than 100 dedicated exclusively to Islamic banking services offers personal and business banking services including private banking
Riyadh Bank - Retail  corporate bank with a network of nearly 200 branches and 618 automated teller machines across the Kingdom.
Banque Saudi Fransi  - Banque Saudi Fransi is a full service commercial bank serving the local and international banking needs of its clients. It is a leading provider of comprehensive financial services and products in the Kingdom of Saudi Arabia and other markets.  It has 79 branches located across KSA.
The Arab National Bank - Bank formed by the takeover of Arab Bank Limited in 1980 offers commercial and Islamic banking products besides services in investment, mutual funds and assets management, local and international equity trading, foreign exchange and treasury
Saudi British Bank - Established on 12 Safar 1398(H) (21 January 1978), SABB formally commenced activities on 26 Rajab 1398(H) (01 July 1978) when it took over the operations of The British Bank of the Middle East in the Kingdom of Saudi Arabia.
Al-Jazira  Bank - Bank that provides Shariah-compliant financial services, including personal banking, business banking, investment banking  e-banking head office is in Jeddah, with branches elsewhere
Saudi Hollandi Bank - First bank in Saudi Arabia, originally set up to serve pilgrims from the Dutch East Indies (now Indonesia). Has 54 branches, today it is a Saudi joint stock company, 40 owned by ABN Amro offers personal banking and corporate banking services and mutual funds
Saudi Investment Bank  - Commercial bank whose activities include personal banking, Islamic banking, corporate banking, investment banking, treasury  electronic banking shareholders include J.P. Morgan Chase, Mizuho Corporate Bank  Saudi investors
Al-Rajhi Bank - One of the largest banking companies in Saudi Arabia offers products and services in personal and corporate banking like credit cards, treasury services, ladies banking, phone banking, deposit boxes, private banking, mutual funds, local shares etc.
Samba Financial Group - Bank established in 1980 to take over the then existing Citibank branches in Riyadh and Jeddah
Islamic Development Bank - The Islamic Development Bank (IDB) is a Multilateral Development Bank (MDB), established to foster the economic development and social progress of its member countries and Muslim communities in non-member countries in accordance with the principles of Shariah (Islamic Law).
Gulf International  - a merchant bank incorporated in the Kingdom of Bahrain.
Emirate Bank
BNP Paribas - A full pledged branch of BNP Paribas S.A. under a license awarded by The Council of Ministers in Saudi Arabia on 12041425 H (1st June 2004) and the Saudi Arabian Monetary Agency on 12th July 2004, covering Commercial and Investment Banking.
National Bank of Kuwait - NBK set up in the KSA by opening its first branch in Jeddah in 2006 to capture Kuwaiti linkages and service Group relationships locally.
Deutsche Bank  - International bank with branches in KSA
National Bank of Bahrain - International bank with branches in KSA
J.P Morgan Chase N.A Bank - International bank with branches in KSA
Alinma Bank - Emirates NBD is the leading retail banking franchise in the UAE, with over 132 branches and over 705 ATMs  Cash Deposit Machines spread across the UAE. Alinma has branches across KSA.
Bank Albilad - Bank Albilad is a Saudi joint stock company.
Bank Muscat  - With assets worth over USD 15 billion, BankMuscat (SAOG) is the leading financial services provider in Oman with a strong presence in Corporate Banking, Retail Banking, Investment Banking, Treasury, Private Banking and Asset Management. Firmly positioned to exceed one million satisfied customers in 2010, the Bank has the largest network of 126 branches, 371 ATMs, 116 CDMs and 4500 PoS terminals.

2.1.3 Banking technology infrastructure present in Saudi Arabia
The advancement in technology and its consequent adoption within the banking sector in Saudi Arabia has changed things for the better, (Ahmed, Zairi,  Alwabel, 2006). In a click,  the routine tasks associated with banking have now come to be completed. Furthermore, from paying bills, reloading a phone, making fund transfers, depositing money, to taking loans for purchasing a home or pursuing education, all has been covered by banks. Of late, all this can be done without visiting the bank branch as frequently as it was required earlier (Aladwani,2003). These services have added a sense of relaxation to Saudi Arabian citizens.

The government of Saudi Arabia strongly supported the introduction of electronic banking systems that can enhance the regions competitiveness with the western counterparts. SAMA had led the establishment of banking infrastructure in Saudi Arabia, mainly composed of the following
ACH Automated Cheque Clearing House
SPAN A national network facilitating all debit and credit card transactions at ATMs and Points of Sale
SARIE A single electronic funds transfer system for high and low value payments
SADAD An electronic bill presentment and payment (EBPP) system
TADAWUL the stock market exchange system
2.1.3.1 Automated Cheque Clearing House ACH. Cheque clearing became automated since 1986 and this provided convenience to transactions between different banks.
2.1.3.2 Saudi Payment Network (SPAN). In 1990, the Saudi Payment Network (SPAN) introduced Automated Teller Machine (ATM) and Point of Sale (POS), which provided a tremendous leap in the banking sector. The SPAN became the network connection of all Saudi banks in providing a common service point to the users. SPAN encouraged Saudi citizens and foreign residents to conduct banking transactions conveniently. The electronic access to their funds through these machines, which can provide cash even at remote locations, had reduced the bank notes in circulation and had increased the uptake in banking facilities. SPAN facilitated transaction availability regardless of terminal ownership. SPAN had provided efficiency in the banking sector by leveling competition at the transaction delivery points.
Aside from providing a common service platform, SPAN also supports various international credit and debit card transactions.
Total transactions executed via SPAN in 2006 amounted to 250 millions for a total value of 80 billion Saudi Riyals, while 83 millions of transactions were executed through POS terminals for a total value of SR 31 billion. 

2.1.3.3 Saudi Arabian Riyal Interbank Express (SARIE).  The Saudi Arabian Riyal Interbank Express (SARIE) provides the system for all Saudi commercial banks to settle payments in a secure and efficient manner. SARIE statistics for 2006 indicate that the value of transactions executed through SARIE amounted to 13.8 billion Saudi Riyals with a total of 20,800 transactions.

Looking at the figures of value of transactions through SARIE, single payments for customer and interbank are handled more than their bulk transactions. Similarly, over the years, looking at the number of transactions, bulk payments for customers are counted and single payment of interbank payments are handled through SARIE system. While analyzing the Bank clearings for cheque, it was observed that commercial and personal transactions have not shown a much reduction in number as compared to the interbank cheque. The credit goes to booming technology that people now engage themselves to various alternative channels services for banking. The message count through SARIE system turned out to be more under single payment for customer and interbank payment. They may be helpful in paying salaries.

2.1.3.4 SADAD Payment System. The SAMA established the SADAD Electronic Bill Presentment and Payment System as a standard, central electronic bill presentment and payment system.  The SADAD streamlines the issuance of bills to customers through a simple and standardized interface, which provided tremendous convenience to customers.
The volume count under the SADAD (utility bills payments software) system is more than the volume count under other channels. Similarly, more value of bills is uploaded than the value of bills that are paid through other channels.

2.1.4  The Advent of More Advanced Banking Technologies
Banking technologies present are ATM, tele banking or phone banking, mobile banking and internet banking. (Ahmadksath, 2009)

2.1.4.1. Automated Teller Machine (ATM)
These are cash dispensing machine, which are frequently seen at banks and other locations such as shopping centers, building societies and even at remote places. Their main purpose is to allow customer to draw cash at any time and to provide banking services where it would not have been viable to open another branch e.g. on university campus. 

An automated teller machine or automatic teller machine (ATM) is a computerized telecommunications device that provides a financial institutions customers a method of financial transactions in a public space without the need for a human clerk or bank teller. On most modern ATMs, the customer identifies him or herself by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip that contains his or her card number and some security information, such as an expiration date or CVC (CVV). Security is provided by the customer entering a personal identification number (PIN).

Using an ATM, customers can access their bank accounts in order to make cash withdrawals (or credit card cash advances) and check their account balances. Many ATMs also allow people to deposit cash or checks, transfer money between their bank accounts, pay bills, or purchase goods and services.
Some of the advantages of ATM to customers are
 Ability to draw cash after normal banking hours
 Quicker than normal cashier service
 Complete security as only the card holder knows the PIN
 Does not just operate as a medium of obtaining cash.
 Customer can sometimes use the services of other bank ATMs.

2.1.4.2 Telebanking or Phone Banking Telephone banking is relatively new Electronic Banking Product. However it is vastly becoming one of the most popular products. Customer can perform a number of transactions from the convenience of their own home or office in fact from anywhere they have access to phone. Customers can do following
 Check balances and statement information
 Transfer funds from one account to another
 Pay certain bills
 Order statements or cheque books
 Demand draft request

This facility is available with the help of Voice Response System (VRS). This system basically, accepts only TONE dialed input. As the ATM customer has to follow particular process, initially account number and telephone PIN are fed for the process to start. Also the VRS system provides the users within additional facilities such as changing existing password with the new desired, information about new products, current interest rates etc.

2.1.4.3 Mobile Banking Mobile banking comes in as a part of the banks initiative to offer multiple channels banking providing convenience for its customer. A versatile multifunctional, free service that is accessible and viewable on the monitor of mobile phone. Mobile phones are playing great role in Saudi Arabian banking- both directly and indirectly. They are being used both as banking and as other channels. It gives alerts on account balance, ticket booking, bill payment and many other similar transactions. This utility can also be limited to SMS banking.

2.1.4.4 Internet Banking The advent of the Internet and the popularity of personal computers presented both an opportunity and a challenge for the banking industry. For years, financial institutions have used powerful computer networks to automate million of daily transactions today, often the only paper record is the customers receipt at the point of sale. Now that their customers are connected to the Internet via personal computers, banks envision similar advantages by adopting those same internal electronic processes to home use. Banks view online banking as a powerful value added tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment. In Saudi Arabia, 
Currently, the following three basic kinds of Internet banking are being employed in the marketplace (Ahmadksath, 2009).

      Informational. This is the basic level of Internet banking. Typically, the bank has marketing information about the banks products and services on a stand- alone server. The risk is relatively low, as informational systems typically have no path between the server and the banks internal network. This level of internet banking can be provided by banks or outsourced. While the risk to a bank is relatively low, the server or web site may be vulnerable to alteration. Appropriate controls therefore must be in place to prevent unauthorized alterations to the banks server or web site.

      Communicative.  In this type of internet banking systems and the customer, interaction may be limited to electronic mail, account enquiry, loan applications, or static file updates (name and address change). Because these servers may have a path to the banks internal networks, the risk is higher with this configuration than with informational systems. Appropriate controls need to be in place to prevent, monitor, and alert management of any unauthorized attempt to access the banks internal networks and computer systems. Virus controls also become much more critical in this environment.

      Transactional. This level of Internet banking allows customers to execute transactions. Since a path typically exists between the server and the bank or outsourcers internal network, this is the highest risk architecture and must have the strongest controls. Customer transactions can include accessing accounts, paying bills, transferring funds etc.

2.2  Theoretical Framework
          This study employs the theory of Technology Acceptance Model that considers end users within the use of a modern technology application and the emerging attitudes and beliefs among such users, as is propounded by Davis (1986). The model concerns itself with the individual and a groups psychological approach towards the usage of an information system and the emergent perceptions and attitudes that arise from the interaction. This study seeks to unravel the complex but practical nature of the advanced technology in the banking sector of Saudi Arabia and its effect on the consumer behavior and attitude to this direction.    In the words of Davis (1986) the attitude of a person towards a technological device and services is depended upon the impact that such a technology has in terms of performance and reliability and not just the necessity that arises basically from its availability. In other words, what compels a staff to use a system that they are initially not in terms with is purely the conviction that the system will ultimately improve their work and efficiency. On the consumer side, the model appreciates that there exist two concepts among the consumers on a new system of technology the perceived usefulness and the perceived simplicity in the use of the device or application. The model clearly answers why consumers will be inclined to adopting the system that is easy to use when presented with two systems serving the same functions but differ in terms of usage.
         
    The perceived ease of use as Davis (1986) avers also impacts on the consumer behavior and attitude in the two-fold mechanisms of self-efficacy and instrumentality. Davis 1989 explains that the most self-efficient system is easiest to use. Furthermore, such a self efficient system will make a consumer feel in control of all that heshe is doing with the system since all the steps are easy to follow and self-explanatory.

             Through this model, the prediction that efficiency affects the consumer within the advanced technology-banking context in Saudi Arabia is validated. However, we must come to terms with the strong statement made of Davis 19989 to validate his model that the strong link between the intention to employ an information system and the end user perceived efficacy are far stronger than the perceived simplicity of use


PART 3 RESEARCH METHODOLOGY AND DATA ANALYSIS
3.1. Research Methodology
This chapter presents the methodology that this research called to task in the collection, analysis and the presentation of its data in accordance with the research topic and objectives.

         Data can be collected in different ways depending on if it is primary or secondary data that is to be collected (Lundahl  Skrvad, 1999). To achieve the data necessary to accomplish the purpose of this research project both primary- and secondary data are used.

Secondary data is information that is documented in books, articles, accredited business magazines and information that is available in other electronic forms, like the internet.
Problems can however occur, as it can be difficult to find relevant material within the wide pool of literature.

The researcher used all informational tools from the National Collection Section of the library and through Internet in general to gather secondary data. The secondary data in this research project consist of bank profiles of some prominent banks in Saudi Arabia.

3.2       Data Analysis   
The researcher also reflected on the manner in which the introduction of advanced technology in the transaction services of the banks in Saudi Arabia have influenced the both the bank strategy and the customer behavior. An evaluation of the technical aspects of the AT in Saudi to ensure it conforms to the underlying meta-theoretical approaches that justify it was inevitable. That is,taking informed notice on how the Saudi Arabian people have been influenced to rely on AT to deal with affairs in their transactional service needs rather than reflecting on the poor state of failed attempts by banks to adopt the AT. 

3.3 Source critique
         When using secondary data it is important to have a critical behavior to the literature. The main reason for this is that many articles are written by personal reflections. To avoid this kind of information the researchers ambition is to have as much scientific literature as possible.
However, the researcher also used other sources to learn more about this subject.

3.4 Population
The population targeted by this research was the banking institutions in Saudi Arabia and their customers.


PART 4 RESEARCH FINDINGS
4.1 Driving force for new banking technologies
The banking industry has the following driving force in looking for technologies suited to banking needs of their customers
Convenience it offers to their customers
Timeliness of information that can be provided to customers
More personalized banking approach
Banking by anyone, anytime, anywhere.
Competitive banking industry
Cost-efficiency provided by integral electronic approach
Global banking technology trends
4.2 The relevance and effects of banking technology in Saudi Arabia
The banking technology in Saudi Arabia has these major service channels ATM and POS, phone banking, mobile banking and internet banking.
4.2.1 ATM and POS   Bansal (2010) noted that the usage of ATMs and POS is more in Middle East countries than in the western countries. Even technology forecasters believe that the Middle East is outpacing the struggle to come up with innovation ideas to support Europay, Mastercard and Visa (EMV) standards in the market. Ways in which electronic fund transfers can speed up had been implemented in regional banks as well.

Looking at the number of bank branches, Samba Financial group and Bank Albilad have maximum number of operational branches. On checking the statistics of ATMs, their numbers have significantly increased over the years and as a result the number of cards issued has increased too.

Under SPAN as well as through the banks, the number of transactions has been increasing. When looking at the cash withdrawals, the increasing numbers are from SPAN and the banks both.

The distribution of ATMs by banks shows that over the years, the ATMS of Al- Jazira have reduced specifically in span of last one year.  In addition, another surprising fact was that Alinma Bank established 82 ATMs that too within the year of 2009 and before that there was not even a single ATM installed by the bank. On a whole there are more than 8000 operational ATMs

The analysis of Point of Sale transaction, sales and POS terminal have increased over the years.

The distribution of POS by banks shows that the Saudi Investment Bank in the year 2005 had 182 terminals and by the end of 2009 is left with 142 terminals only. On the whole there are more than 80,000 POS bank terminals.

Tim Michalk agrees on the point sharing about the evolving process of building ATMs. He explains, As these self-service terminals evolve to include ticketing, reservations and other services, software experts will be needed to connect the terminals to other systems, design interfaces and others provide a seamless customer experience. The applications end up being kind of endless

4.2.2 Telebanking or phone banking - The setup of customer service division offering solutions over the phone eased the way for the growth of phone banking.

Saudi Arabia British Bank has been awarded for best phone banking service for the year 2010 in Middle East for the following reasons
They received the award for covering maximum service coverage by call center. 
Nearly 180 fully automated services were accessible by the customer without visiting the branch.
They have customer voice to voice their suggestion, opinions.
They are convenient, cost effective and preferred service providers .They offer lowest online transfer charges.
They provide free real time SMS alerts related to services

Telephone banking is remote banking that has offered customers save time and gave them convenience to perform simple transactions over the phone. As far as banks are concerned, they have improved on their productivity by reducing the bank branch service and utilizing this time in some other activities.

4.2.3 Mobile banking  - The SMS banking options found on the phones are agreeably different from the ones on the internet, which provide a rather broader options and functionality, but are much open to those customers who have computers and a reliable internet connection. Again, the speeded on the spot messaging alerts found in the phone banking such as the SMS are very fast compared to the internet banking options like the blog posts, emails and such whose messages to the customers and vice versa are prone to delays and delivery failures. The phone banking option, in Saudi Arabia has come to eradicate banking insecurities especially through the SMS banking where customers are kept abreast with issues of ATM fraud and such instantaneously.

4.2.4 Internet banking. Internet banking too has offered the customers the convenience of time and flexibility to handle transactions at their own wish. According to Jaisamuddin, ( 2003)  As at the middle of 2000, there are 11 banks with 1201 branches operating across Saudi Arabia. Of these, eight banks (73) have established their presence in the web sites and only two of them are offering Internet banking services. These web sites are designed in Arabic and English for clients added convenience.

The main banking assistances served to the customers by the online banks are
Wire Transfers of monies across a multiple bank account option.
Allowance to view and even print mini account statements.
Hourly updates on the foreign exchange rates and banking rates. 
Email delivery on requested information and mini statements.
Online request for physical delivery of cheque books
The following table shows the banks present in Saudi Arabia, which has web presence and encourages internet banking.

Table 1 Classification of the banks of Saudi according to the web content
ContentsSIBSBBNCBSHBANBRBARBICSAMBAInternet bankingFinancial MarketRetail bankingCorporate BankingInvestment ServicesTreasury servicesAbout the bankFinancial OutlookHot linksATMBranchesFind UsJob  Human resourcesPublicationsPress ReleaseLatest NewsContact and emailYour feedbackSite mapSite searchOn line formRatesSign  means does provide serviceNotes SIB Saudi Investment BankSBB Saudi British BankNCB National Commercial BankSHB Saudi Hollandi BankSAMBASaudi American BankANB Arab National BankARBICAl Rajhi Banking  Investment CorporationRB Riyadh Bank

4.3 Customers behavior toward the enhanced service channels
Understanding customers needs and offering a feasible solution led to the growth of flexible banking system (Shane, 2009). Internet banking, phone banking and mobile banking led to a major breakthrough as they offered the convenience of anywhere and anytime banking. It made people save time, money and effort of visiting branch and wait for their names to be called. The banking processes have become speedier and reliable. Also the proper security measures and policies of the banks have made people secure to accept the new channels of banking. Banks now come up with friendly, flexible financial solutions that gave them new meaning to Smart Banking.

It has been observed that while the impact of technology is increasing, so are customers becoming more demanding. The top most factors in customer retention and attracting new customers is adapting an integrated approach of handling customer data. It gives the customer an impression that the bank personnel knows them and their needs, and will work out a solution for their benefit. It increases customer satisfaction.

In Saudi Arabia, discrepancies in behavior among individual banking consumers have been feasibly theorized and linked with acceptance of the IT and the advanced technology within the transaction services of the Saudi banks. Karjauloto et al. (2002), Assael (1981) insists that consumer behavior should be restricted and studied through the lenses of demography, attitudes and culture. Most of the Saudi Arabian acknowledged literature regarding the acceptance of advanced technology among the banking consumers has repeatedly pointed to the truth that age has come to be of great influence.  As Karjauloto et al. (2002) points out, many of the older consumers, and their conservative tendencies, have been known to have difficulties with new technology and therefore more inclined to develop negative attitude towards the technologically informed banking transaction services. Furthermore Trocchia and Janda (2000) in Karjauloto et al. (2002), state that characteristically, this older consumers have negative attitude to any form of change within the banking sector that involves the access to their bank accounts. 
  
     However, according to Trocchia and Janda (2000), it is believed that an individual has personalized attitudes towards technology and its credibility is more influential than age. In Saudi Arabia, the usage of this technology among the consumers has also raised gender geared discussions due to the emerging revelations that most males use this technologically informed transaction services than do the females. More males than women have been exposed to computer literacy and since prior experiences with computers develop the need to embrace new technology, women have been reported to be more inclined to develop a phobia for this technology and thus a negative effect. The more consumers trust and use a new technology in banking, the more positive they become to newer and more sophisticated banking technologies.

    While experiences among group may influence consumer attitude and culture, it is worth pointing out that banking and access to bank accounts is viewed to be more personal than communal, therefore reference group influence may not be named as a major factor.                                                 

          Within the discussion maxims of advanced technology in banking channels and its impact in the consumer attitudes, beliefs and culture have been viewed as variables that are too segmented and should be defined clearly within consumer classifications that are informed by similarities within attitudinal and belief profiles. In Saudi Arabian case, the four (4) attitudinal approaches to technologically defined banking as presented by Machauer and Morgner (2001) in Akinc et al. (2004) is all befitting. This attitudinal approaches clusters consumers in Saudi Arabia as those that are oriented by transaction, the generally interested, those oriented by service and the anti-technology group.

Those oriented by transaction include traders who constantly want to access their accounts many times a day and therefore seek quick and accurate service.

The generally interested are the groups of consumers who enjoy the ease at which things are done and are at times too excited by the technology. They become part to any bank that introduces newer technology.

The services-oriented include the salaried class who are interested in newer banking services that are swift and cheap. The services oriented are attracted by newer loan rates and mortgages.

Finally, the anti-technology, as was noted earlier includes largely the older consumers who believe in the business as usual principles. They want things to remain the way they were and will take to long (or will even never) to embrace a new banking technology

4.4 Impact on the customer
The impact of technology in all fields has made customers more aware about the increased choice of productsservices says Garcia (2006). The competition has made the customers demanding as banks compete to offer more and more services.

According to Al-Ghaith et al (2010) the usage and reliance on the ICT has increased among the Saudi Arabian people. They are more comfortable with the internet and computer services. Some of the areas of consumer behavior and orientations towards technology as mentioned by Al-Ghaith et al (2010) are that Complexity is the degree to which the Internet or its services are perceived as relatively difficult to understand and use

Consumers utilize online services because they offer convenience and save time. However, some researchers have shown that online consumers can shy away from online services because of concerns about privacy

The results of their studies show positive correlation between privacy and the e-service adoption in Saudi Arabia. They conclude this to be reason of the growing use of internet technology in various areas.
         
TNSNFO, the largest custom marketing research company in the Middle East, conducted the TargetMoney Survey. Up until year 2000 the popularity of different productsservices was quite low in Saudi Arabia as compared to other nations. A mere 22  of credit card usage and nearly 11 had personal financing with banks.

4.5 Impact on Saudi Arabia of advanced banking technologies
     Mehta (2008) stated that Saudi Arabia is the first nation in the region to adopt the self-service banking trend and we anticipate that other GCC countries will quickly follow suit. The deployment of banking solutions in Middle East is based on a ripple effect. Saudi Arabia is the drop that instigates the ripple and this then spreads to the other GCC countries, expanding to banks of Kuwait, Qatar and the UAE.

In a report given by the banking sectors analysis in the Saudi Arabia from 2007 with projections up to 2011, it showed the leading-edge opportunities critical to the success of the banking industry. Some of the Key Findings according to (RNCOS, 2007)
The total bank deposit of the Middle East (ME) is projected to increase at the rate of 19, CAGR.  This indicates inflow of additional customers or depositors.
There are potential opportunities within the Microfinance sector while currently the existing Microfinance machinery only meets a merger 5 of MEs demands. 

The tremendous rise of the young and yet adequately educated population has been the mover for the MEs banking sector since such a population is informed on the products and the services of banks and such the best of such services.

The credit card market in Saudi Arabia is projected to rise at a steady rate of 7 by 2010. Since this market is still unexplored to its capacity, opportunities for its growth are still underway.   The credit cards industry in SA (Saudi Arabia) is prophesied to meet and ultimately maintain the regions growth demands of about 19 per year due to the regions fast growing economy, negligible levels of credit loss and the ever streaming flow of newer players within the banking sector (RNCOS, 2007)

4.6 Impact of customers behavior in banks investment in service channels
Working in an integrated approach allows banks to keep all data centralized and hence increases efficiency by looking at the cross department data and plan future strategies. Hence it can be concluded that the future emphasis should be on investing more on technology based services and products that could  keep the loyal customers with the banks while attracting the new ones. The majority of the customers support the same belief (A-Ghaith et al ,2010). Investing more on technology will give the benefit of increasing profitability, the ability to handle competitive pressure, and address increasing customer needs. Also apart from investing on technology, they need to reach the minority markets. Some non-financial institutions have also needs that can be addresses in a way that could increase the profitability of the banks.

Since globalization has brought all nations on common platforms, people have no option but to be aware of the beliefs and cultures of other nations.  The emergence of successful technologies on other countries had also made Saudi Arabia welcoming of adapting new methods in banking and customer service.

K.M George (1999) shares that the banking marketing strategy functions to first attract the depositors and then the borrowers of the funds. This adds an element of complexity to the process. The banking has undergone a drastic change. Now instead for waiting for the customer to visit the bank with a concern or some need, the bankers now themselves analyze the needs of the customers and then put the solutions within reach of the customers prior to their need.

      Innovation is modernization, improvement or advancement.  The concept of building relations and value creations was emphasized rather than just counting on numbers of customers as stated by Al-sukkar  Hasan, (2004). Banking processes were made transparent and involved the customer, making him feel special and in control. There was a lot of mind, money and effort involved in making this industry a hit and bringing it to the level of global competitor amongst other industries. There was a need to match up with the pace of developed nations.

            It was just not the implementation of advanced technology instead a touch of globalization too, Attiyah, (1989). The race or the competition to be listed in developing economies of the world added catalyst to the process, Attiyah, (1989). The contribution to technology and globalization resulted in bringing up new products services channels and techniques utilized by banking industry.

       Every sector was trying to cope up from the financial crisis and banking sector was no exception. There was a need to increase the liquidity from various sources and so some more changes were introduced in the months of Nov-Dec2009 the currency held with commercial banks showed a drop in figure from 17.6 MM Riyals to 10.8MM Riyals, Attiyah, (1989). This was done to increase the liquidity that was needed to come out of financial crisis.

           The banks in Saudi Arabia have been the in discussion for quite some time Now, Dr Omar bin Sulaiman revealed the fact that the ME banks were able to come out of the global crisis and is now getting ready to expand, Attiyah, (1989).  The non-Muslims may accept it as an alternative tool of investment, (Hoffman 2009). The example that shows the western banks have accepted the new approach is the establishment of Citi Islamic Investment Bank in Bahrain.

            The banks working on Islamic principles need to have a better understanding of the concepts to match up with traditional western bankers, (Keeler, 2010). In addition, the issue that the Islamic bankers need to trust western bankers who have a very different approach of carrying out the operations that too with handful of investment opportunities seems like a challenge.

    Jassimudin(1992) stated that while the banks in developed countries are working primarily via internet as non-branch banks, Saudi banks use the Internet as an information delivery tool to improve relationship with customers. Among the Saudi banks, some are using it as an electronic brochure and very few are using it as banking channel. Some others still prefer a wait-and-see practice.

Online banking is still a very marginal activity in Saudi Arabia. Internet is currently being used by the Saudi banks mainly for brand awareness and promotion (Jassimudin, 1992) . However, the dynamic and imperatives of e-finance will push Saudi banks to build web site  to enhance internet banking. Since customers are coming to know the internet banking system, they will soon start asking for this service from their banks thus putting pressure on the banks to adapt immediately internet banking. This will trigger all Saudi banks to have a secure web presence, as the advantages are so huge that there is no reason to be left behind.

4.7 Challenges in embracing technology
Some of the challenges that the banks face while implementing technology and covering the customer needs with growing market segments are as follows
The drift from branches to online channels needs proper customer verification procedure that could ensure account security.
The need to reduce service charges and transaction costs is a growing concern.
Keeping customer service on the top while not losing the focus of the sales target
Technology is a great tool in building strong relations with the customers. All that is required is using it to enhance customer experience.

Globalization is the need of the hour. This also contributed to increase the market segments and competition as well.

With the technological advancements taking place at a quick pace, the changing needs of the market segment also evolves. The banks are willingly ready to invest a huge amount in IT to introduce new e-services, re-engineer their setup and most important of all, manage and prevent  potential risks.

Hoffman (2009) believes there are some major challenges that slow the technology use in banking and they are Meeting the customer and the business demands for a convenient 247 banking services with the options for alternative channels of banking.

An integrated approach of technology with the business objectives providing the personnel with updated information and services access.   This increases the complexity of the system.

Keeping proper security measures that could keep the data and processing of transactions secure.
Alarming dissatisfaction over customer privacy and security, that have precipitated counter efforts within the IT projects to put such uncertainties under. 

        With the introduction of alternative channels through technology, the revenue has increased rapidly. The efficiency in terms of processing transaction has increased and also it has helped greatly in becoming cost effective too. Changing alternative channels from mere transaction medium to selling windows will be given emphasize.

4.7.1 Customer insufficient trust in advanced technologies
        The inherent mistrust in the advanced technology among the customers is one of the major factors that has contributed  to failure of its full adoption among the banks in emerging economies and developing ones like in the Middle East and countries belonging to the GCC, (Shalhoub, 2006). The GCC inception is based on the 1981 agreement reached at Riyadh, Saudi Arabia between Bahrain, Qatar, Saudi and the UAE. Its major endeavor has been to address the issues of commercial trust among these nation states, however to address such trust issues within the platform of the technologically driven commerce has proven hard putting the complexity and the unpredictability of this technologies into considerations. Though along this grain of technology, it is befitting to sum up that functionally, trust can be viewed as divergent from that of the traditional settings of banks in Saudi Arabia but a rather cohesive system of cutting down the levels of uncertainty, lack of confidence and troubles of transactions and the customer relations with the electronically defined banking system. Trust therefore has become the litmus paper test through which a bank tests its success or failure among its clients and the targeted ones. Again, trust has come to be the consumers main shaper of belief and banks in Saudi Arabia. Banks have been forced to re-strategize to ensure that they precipitate trust among their consumers. Efforts to raise the level of trust among the consumers have led to increment of security among the technological banking channels and the trustworthy behavior of banks, which will ultimately be of great importance for both the banks and the consumers.

4.7.2 E- Banking customers security concerns
          The convenience found in the ability of a banks advanced technology to carry out simplified transactional services and the ultimate dissemination of information or even notifying customers on daily accounts updates through their mobile phones, emails and such, is always the overriding factor that takes over the doubts among the customers who  are mostly overwhelmed by security dissatisfactions. The simplest channels, such as person-based user-terminal communication device, mobile phone and email, are the most effective way of reaching customers since mobile phones are often carried wherever customers go . Furthermore, the usages of the SMS banking options in the phone menus that are characterized by the easy-to-follow application key instructions are very simple to use.

        This advent of advanced technology in Saudi banks has brought out issues of customer insecurity concerns and has thus afforded the customers a lot of confidence and trust with the banks and their information applications unlike in the past.

        The void of encryption on the phones SMS options has always been a very fertile topic for academic and technical discussions. Such discussions are found within the IT departments of the banks due to their ardent skills and experience amassed over the years on the ATM and the SMS banking channels. This deficiency in the encryption within the phone SMS banking platform has caused the banks to eradicate the insecurity feeling among the customers by calling to task the usage of this application only in the areas where it offers an advantage over the other poplar channels. The vendors of the SMS banking applications have found safer ways through which their applications can address top security and confidentiality concerns among the banking clientele. Traditionally, the safer ways include pre-registration and the use of security codes in areas where banking transactions are anticipated to risky. Sometimes the ATMs security codes and PINs are ferried into the SMS banking security but have been perceived to be cumbersome and time consuming to the part of the consumer. The basic challenges within this area of advanced technology in the Saudi Arabian banks are handset simplified functionality, insecurity concerns and sustainability.

4.7. 3 Caution within banks in Saudi Arabia
      The Banking sector in Saudi Arabia is adopting the advanced technology within its transaction service rather slowly and cautiously due to security and reliability concerns that come with it. There is therefore a growing multiplicity of calls for the academic and the IT fraternity at large to beef up awareness among the consumers on the positive impact that the adoption of advanced technology will have on the future of this country.  For only when such an initiative has been successfully knocked into the senses of the Saudi banking customers, will they shed their uncertainties and embrace the virtual banking and ultimately its unspeakable rewards. In the words of Ahmed et al (2006), the major challenges pointed out among the Saudi Arabian banks and financial institutions is the overreliance on the face-to-face consumer service principles, overwhelming information needs, exorbitant transactional charges and the inexperienced technical team. However, Ahmed et al (2006), admits that Saudi Arabia is rated among the top nations state in Middle East countries as far as the adoption of the IT in the banking sector is concerned.

4.8 Possible Trends in Banking Technologies
ATM will continue to be an important channel for cash withdrawal however with the introduction of mobile services the ATMs may fade away. The reason for reducing the ATM users is that the Middle East countries have huge number of mobile users along with high users of credit cards. It will end up making full utilization of the mobile as an alternative payment services.

          The mobile payment service market will show tremendous growth as it has been designed keeping the customer convenience in mind. Initially starting with small payment they will keep addressing the market needs and take it to the next level of offering high value payment of credit bills and covering debit network.

             Beyond all these developments the regulations and the security will be given due importance in a way that makes customer feel comfortable instead of feeling caged in the market rules.

             Another important innovation and advancement in alternative payment channels is through the introduction of chip technology, which will be up to EMV and electronic fund transfer standards.


PART 5 CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
The strong government support of Saudi Arabia is a big factor why Saudi has a well-planned economy.   Saudi Arabia has the seen the advancement of technology in and around the world and thereby managed to reach the height of competition. The credit also goes to the strategies by SAMA that made the world see the level of advancements made by the country specifically in the field of banking sector. With the rest of the Middle East countries still on the way to reach some milestones, Saudi Arabia banking technology has edged his neighbors. The growing oil and natural gas resources, oil revenues, petroleum export revenues introduced the need of banking and financial sector.
Prior to these technologies,  banks in Saudi Arabia try to be a peoples bank by offering efficient pricing, convenient service and accessibility, keeping customer values and needs in mind, however  they still encounter customer dissatisfaction with the service in the branch, long hours consumed by few transactions as well as poor management of the resources. As a result, banks researched the best ways they can provide service to their clients. They implemented information technology systems that created an automated banking environment. When internet became available to most of their users, they also adapted to internet banking providing convenient access to their customers. The increasing number of the ATMs and POS terminals shows that people are growing towards the trend of technology.

These changing trends have directly influenced the customers belief towards the banking services and products. They are now more demanding and also the banking channels are making them more dependent on technology since it give them convenience and flexibility to work from anywhere and anytime. All that is needed to appease the customers worry is to keep a check on the security measures as that one area that can affect the banking technology and the people in a negative way.
Apart from technology, the impact of globalization too has changed the customers belief and behavior towards banking. People are now accepting trade and investment opportunities from foreign locations. This means that they are now looking for non-Islamic banking opportunities in a positive way.

Embracing technology has become also inevitable for the banks in Saudi Arabia since it cuts short the costs of staffing, sharpens a banks competitive edge and ushers in  a newer platform of efficiency. Customers have been more inclined to these enhanced services since they make banking transactions fast, easily accessible and are usually not limited by time or location factors.  Customers must be made to feel confident about the privacy and security issues which is  a very important determinant  of the success of electronic banking.

5.2 Recommendations
    Customers rely on convenience and efficiency of the service they want. However, in banking, trust is the customers foremost consideration. If a bank is trustworthy, efficient and reliable, the bank customers remain loyal to the institution.

    Despite the banking technologies, trust and security are still the customers primary reasons for choosing their bank.

    Banks need to engage their customers deeper by utilizing the technologies available without forgetting to enhance security and trustworthiness. Since in banking, forgettable transactions are the norms, a bank that provides security, confidentiality and high quality user- experience is the one who will surely engage customers into a strong lifetime partnership.


APPENDIX 1
The cost of living index has an increasing value over the period. The majorly by home furniture, medical care, education and entertainment, renovation, rent fuel and water and also education and entertainment over the period. It was fabrics, clothing and footwear that have seen a fall in price and telecommunication and transportation has been neutral on an average. So also on an average the general index of living has increased over the period of time.


APPENDIX 2 BELIEFS AND CULTURES
Islam
Middle East countries cannot be discussed without mentioning the emphasis of Islam.  Muslims pray five times a day. The meetings, appointments are adjusted appropriately keeping the prayer timings in mind. Business should be avoided during Eid and holy month of Ramadan.
Gender
 The gender bias exists in Middle East countries. Each gender group has a specific role defined. They stay covered up to their heads and prolonged eye contact is prohibited. This is in certain countries  in general being specific is valued
Business
 The people of Middle East countries do not keep business and personal life at a distance instead they take business personally to the level of personal ties, honor and respect. Personal relations take an edge over the business.
Values
The Middle East countries value on words more than the written agreement. They link to the level of that persons honor and as a medium of increasing understanding rather than a strict contract.
Meetings
Saudi Arabians emphasized on relationship building rather than just talking and discussing business. They plan to work on building trust. At times they may not be as well organized as the western countries in their meetings. 
Negotiating with Arabs can be a difficult task as they are traders that make them great negotiators. They like to be punctual and promote the practice too however do not succeed hence giving polite excuses works well in such situations.
Greetings
They have a special way of greeting in Islamic greeting. They preferable use right hand in shaking hand and wait for the other person to withdraw hands.