Banking
From The Report: Saudi Arabia 2014
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The past year has been a positive one for the Kingdom’s banking sector, with asset growth and profitability continuing the upward trend that has buoyed the industry in recent years. Growing cooperation between local and overseas banks has helped the sector, while remittance flows in the Kingdom are second only to those in the US. Government initiatives offer support for SMEs looking to boost employment and the non-hydrocarbons sector. In overhauling their technological infrastructure and rolling out new tech-based services to their customers, Saudi Arabia’s banks have a strong platform to expand their operations. The banking sector has shown itself to be particularly adept at building retail loan books and the new mortgage law looks set to help in this regard.

This chapter contains a viewpoint from Fahad Al Mubarak, Governor, Saudi Arabian Monetary Agency (SAMA), and an interview with Bernd van Linder, CEO, Saudi Hollandi Bank.

Articles from this Chapter

Viewpoint

Smart regulation: Fahad Al Mubarak, Governor, Saudi Arabian Monetary Agency (SAMA), on new developments in the Kingdom’s financial sector
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First, I would like to review the latest economic developments in Saudi Arabia. Last year, our economy continued to grow for the 14th consecutive year. Real GDP grew by 3.8% during 2013, which was greater than the global average of 2.9%. Meanwhile, the private sector grew by 5.5%. The growth of the Saudi economy was primarily driven by continuing government investment, especially in infrastructure, and by reforms to regulations and improvements in the business environment, which served to promote…

Interview

OBG talks to Bernd van Linder, CEO, Saudi Hollandi Bank
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In what ways are banks preparing for future lending growth as demand increases in the private sector and government projects are implemented? VAN LINDER: The Kingdom’s banks are in good shape. Many of them have recently strengthened their already strong capital positions through the issue of subordinated Sharia-compliant instruments. Given their strong capital positions, solid coverage of non-performing loans and excellent liquidity, Saudi banks are well equipped to support the growth…