Abstract
In an increasingly competitive financial ecosystem, Islamic banking institutions must leverage their intrinsic faith-based and ethical mandates to cultivate long-term customer relationships. Grounded in the overarching framework of Maqasid al-Shariah (the objectives of Islamic Law) and Stakeholder Theory, this study examines the multidimensional impact of Islamic Corporate Social Responsibility (ICSR) practices—comprising religious, ethical, philanthropic, and environmental dimensions—on customer loyalty within the retail banking sector of Saudi Arabia. Furthermore, the mediating mechanisms of customer trust and customer satisfaction are evaluated. Utilizing a quantitative cross-sectional design, empirical data were gathered from 428 active Islamic retail banking customers across major metropolitan regions in Saudi Arabia. The conceptual model was empirically tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The structural analysis reveals that ICSR dimensions exert a significant positive effect on customer loyalty, both directly and indirectly through customer trust and customer satisfaction. Notably, the religious compliance and philanthropic dimensions of ICSR emerged as the strongest predictors of customer relational outcomes. These findings emphasize that Saudi banking consumers perceive authentic sharia-aligned social engagement not merely as philanthropic expenditure, but as a strategic imperative that deepens institutional trust and retention. The study yields actionable managerial implications for Islamic financial institutions seeking to optimize their corporate governance and socio-economic value proposition in alignment with Saudi Vision 2030.
