Banking consolidation is significant in the contemporary economy, especially in the context of the Kingdom of Saudi Arabia's Vision 2030. The aim of banking consolidation is to create major banking conglomerates capable of international competition, offering distinguished financial services, thereby increasing trust among clients, and preserving their savings. Consolidation serves as a mechanism to counter foreign financial institutions and enhance the financial structure of national banks. The effectiveness of consolidation in developing the Saudi banking sector and achieving the goals of Vision 2030 is pivotal, highlighting the need for legal regulation to govern this process and support the creation of banking entities that can keep pace with global developments. The role of consolidation in promoting economic growth and improving the performance of the banking sector is evident. It aims to underscore the role of consolidation as an effective supervisory tool in the financial sector, demonstrating its ability to enhance efficiency and competitive advantage for banks, as well as the substantial benefits it offers in terms of achieving financial stability and market development. Several conclusions have been reached, including that consolidation contributes to the development of the banking sector, the creation of banking entities capable of sustainable development, and the improvement of economic stability. This encompasses the necessity to adopt effective consolidation policies, provide logistical support to banks, organize workshops to explain consolidation laws, and encourage joint Arab consolidation. It is also suggested that specific legislation for banking consolidation processes be developed to achieve strategic objectives, rather than merely relying