Are you aware that Saudi is the only country that allows free cash withdrawal from any ATM? what are your attitudes towards the retail banks?

I wasn't aware of that.

Retail banks are very efficient and crucial in order to maintain a healthy consumer market, the credit ease and electronic transactions make it very easy to buy goods. 

It motivates the consumer to withdraw cash as in when required from any ATM which attracts more purchases and boost the economy.

brilliant idea , as it saves cost of funds of cash in vault of cash withdrawals over the counter for each bank , investing the saved cost to enhance their services .

in Saudi Arabia, Islamic financial systems is a MUST. So, to avoid Ribaa' financial institutions need to obey such laws. 

ATM network gives you a flexible way to manage your cash with convenient transactions e.g. withdrawals, deposits or transfers, but also ATMs can be subverted to work against us. While the account management side of things should be left to online and telephone banking (or, indeed, visiting your local branch) there is still the matter of withdrawing money.

While cashback is a useful option (and should certainly be considered when you shop for groceries in your local hyper or supermarket) it comes with its own risks. Either way, you need to know just what threats you might face when using an ATM.