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  • Saudi Aramco Picks Advisors for Second Run at Initial Public Offering
     

    Saudi Aramco has made first selections for financial partners in its rejuvenated attempt to file for an initial public offering (IPO), choosing Bermuda-based Lazard Ltd. and Moelis & Co. as advisors, people with knowledge of the matter told Bloomberg. “The boutique investment banks have started preparatory work on the offering, according to the people, who asked not to be […]

     
  • Saudi Arabia to establish an independent export and import finance bank
     

    Saudi Arabia will establish an independent export and import finance bank with a capitalization of SAR 30 billion riyals ($8 billion) to provide financing to local exporters and foreign importers, the UAE-based The National reports. The Kingdom first proposed the EXIM bank to support sales of its goods abroad in 2017. The Saudi Exports Development Authority (SEDA) […]

     
  • Aramco Officials Begin Early Talks with Banks for SABIC Stake Financing, Report Says
     

    Saudi Aramco officials began early talks with banks about a potential debt financing of up to $70 billion to back its acquisition of a majority stake in Saudi petrochemical firm Sabic, Reuters reports, citing banking sources. JPMorgan and Morgan Stanley were picked to advise on Saudi Aramco’s plan in July. Aramco is looking at the 70% strategic stake in Sabic which […]

     
  • Saudi Arabia’s PIF Seeks $11 Billion Loan, FT Reports
     

    Saudi Arabia’s Public Investment Fund (PIF) is set to choose international banks to lend the wealth fund $11 billion, according to a report in the London-based Financial Times. The FT reports that there is strong interest from major international lenders in participating in the loan to the PIF, including “[s]ome of the most senior names in international banking, including JPMorgan’s Jamie Dimon, Morgan […]

     
  • Report: Saudi Binladin Group (SBG) to be Renamed and Resized after Rough Decade, Graft Allegations
     

    The one time leader in Saudi Arabia’s construction market, Saudi Binladin Group, will be slimmed down and renamed, according to an exclusive Reuters report, which cited six sources familiar with the matter. The government seized management control of the construction giant from the chairman and other family members after they were detained in anti-graft arrests last […]

     
  • Reports: Crown Prince and Delegation to Meet with Tech, Defense, Banking Giants
     

    Two separate reports from Bloomberg confirm that Saudi officials are eying meetings with major banking houses and technology giants during the Crown Prince’s nearly three-week long visit to the United States. The delegation currently visiting the United States will seek to meet with executives from Amazon, Apple, Google, Pfizer and other companies as they hunt for […]

     
  • Report: Saudi Government, SBG in Talks for State Takeover of Troubled Construction Giant
     

    Saudi Arabia is taking managerial control of Saudi Binladin Group (SBG) and discussing a possible transfer of some of the giant construction group’s assets to the state while its chairman and other family members are in detention, Reuters reports today citing sources. Binladin is the biggest builder in the country and important to Saudi Arabia’s plans for […]

     
  • Citigroup Saudi Arabia to be ‘Fully Operational’ in 1Q 2018
     

    Citigroup will be “fully operational” in Saudi Arabia in the first quarter of 2018 after an absence of more than a decade, according to reports, as it seeks to capitalize on opportunities in debt and equity capital markets. The new business will be branded as Citigroup Saudi Arabia and will offer a full range of investment banking, debt […]

     
  • Vision 2030 Opportunities ‘Unprecedented in the Region’, HSBC Exec Says as Bank Plans Saudi Expansion
     

    HSBC is planning to add staff to its Saudi Arabian operations as the kingdom embarks “on one of the biggest economic transformations attempted by any country,” the bank’s regional chief Georges Elhedery told Reuters, via the New York Times. HSBC, which started as the Hong Kong and Shanghai Bank and is now based in London, is a […]

     
  • 7 Major Changes to the Kingdom of Saudi Arabia that Happened This Weekend and What They Mean
     

    Over the weekend, Saudi Arabia’s King Salman announced a series of major changes to key leadership positions, a new “national security center” for Saudi Arabia that is affiliated with the Royal Court, and more. Here’s what is different now for Saudi Arabia and what those changes mean for the Kingdom, U.S.-Saudi relations and Saudi Arabia’s […]

     

MUST-READS

  • Saudi, UAE Banking Sectors Face Contrasting Liquidity Dynamics

    The Saudi and UAE banking sectors face contrasting liquidity dynamics, Fitch Ratings says in a new report. We expect Saudi banks’ funding costs will ease due to SAR50 billion of liquidity injections from the Central Bank of Saudi Arabia in June 2022, with more likely to follow to support strong loan growth. UAE liquidity conditions are more supportive, helped by modest loan growth. The contrast in liquidity conditions is illustrated by the sector loan-to-deposit ratios, with the Saudi ratio at its highest level for at least 15 years and the UAE ratio at its lowest level for more than a decade.

  • Digital banking start-up YAP raises $41 mln, to expand into Saudi Arabia

    YAP, a digital bank in the United Arab Emirates, said on Monday it had raised $41 million in funding and targeted raising another roughly $20 million to finance its expansion plans. The investors so far included Saudi Arabia's Aljazira Capital, Abu Dawood Group, Astra Group and Audacia Capital. YAP said it intends to complete it Series A by the end of the year.

  • Purpose-led, customer-centric strategies to fore in Saudi banking sector: KPMG report

    The report emphasizes the evolving landscape in the Kingdom’s financial services sector and with a consolidated analysis of the latest available financial performance of the 10 Tadawul-listed banks. The third edition of this annual flagship publication focuses on the theme of purpose-led banking, encompassing the developing environmental, social and governance (ESG) considerations and customer-centric perspectives that are underpinning boardroom discussions.

  • Research: Alvarez & Marsal Releases Saudi Arabia Banking Pulse for Q1 2022

    Leading global professional services firm Alvarez & Marsal (A&M) has released its latest Saudi Arabia (KSA) Banking Pulse for Q1 2022. The report suggests that aggregate profitability of top Saudi banks increased substantially by 17.6 percent quarter on quarter (QoQ) in Q1’22 driven largely by operational income growth of 5.6 percent QoQ. Better cost efficiencies and lower impairment charges also supported growth, with most banks showing improved coverage ratios and net loan ratios, highlighting their improving credit profile.

  • Risks to Saudi Arabia’s banking sector to remain ‘contained’ as economy recovers

    “Under our base-case scenario, we expect domestic private sector credit to reach 90 per cent to 95 per cent of GDP [gross domestic product] in 2022-2023 versus 68.8 per cent in 2019. We expect the cost of risk to stabilise close to pre-Covid-19 levels after declining in 2021.”

  • Inside the banking struggles of UAE’s start-ups

    Hefty minimum-amount requirements combined with a bureaucratic and lengthy procedure are just some of the hurdles the country’s entrepreneurs face when setting up an account for their small businesses

  • Citigroup plans more investment in Saudi Arabia, eyes banking license

    Citigroup wants to pursue a banking license in Saudi Arabia to further boost its business in the kingdom by expanding into trade finance and treasury solutions, a senior executive said. Citi was awarded a Saudi capital markets licence in 2017, allowing it to return to the kingdom in 2018 after a 13-year absence.

  • Saudi Arabia’s measures contained pandemic impact on banking system, Fitch says

    Measures taken by Saudi Arabia to curb the impact of Covid-19 on its economy and rising oil prices have helped the kingdom contain adverse effects of the pandemic on its banking system, Fitch Ratings has said. "Operating environment pressures from the pandemic have reduced, helped by recovering oil prices, high credit growth and resuming economic activity," Amin Sakhri, a director at Fitch Ratings said in the latest peer review note on Saudi Arabian banks.

  • Saudi has strongest banking system among GCC, S&P Global Ratings says

    S&P Global Ratings said on Sunday that the COVID-19 pandemic and last year's oil price crash did not affect all Gulf Cooperation Council (GCC) banking systems in the same way, highlighting that the Saudi Arabian banking system appeared to be the strongest in the current environment. "We expect GCC banks' asset quality indicators to deteriorate only slightly thanks to regulatory and government support measures, and improving economic sentiment," the rating firm said in the comment.

  • The State of Islamic Banking

    The issuance of sukuk—Islamic finance’s non-interest equivalent of bonds—is anticipated to drive much of the expansion. “Sukuk is expected to maintain its position as a major growth driver for the Islamic finance industry.