Banking
From The Report: Saudi Arabia 2019
View in Online Reader

As one of the biggest banking sectors by assets in the MENA region, Saudi Arabia has been something of a sleeping giant in recent years. Economic uncertainty and the effects of low international oil prices have seen both muted lending growth and deposit acquisition, while economic reforms have led to more market uncertainty. The Kingdom’s lenders have, however, remained profitable throughout this period, and are well positioned to take advantage of opportunities arising from an anticipated acceleration of economic growth. In the meantime, an industry that has seen little structural change over recent decades is about to be transformed by new market entrants and mergers of some of its biggest institutions. This chapter contains interviews with Ahmed Alkholifey, Governor, Saudi Arabian Monetary Authority; and Søren Nikolajsen, Managing Director, Alawwal Bank.

Articles from this Chapter

Overview

Solid base: Despite muted lending growth and deposit acquisition, sector fundamentals remain sound as profits continue to rise
OBG
plus

As one of the biggest banking sectors by assets in the MENA region, Saudi Arabia has been something of a sleeping giant in recent years. Economic uncertainty and the effects of low international oil prices have seen both muted lending growth and deposit acquisition. The Kingdom’s lenders have, however, remained profitable throughout this period, and are well positioned to take advantage of opportunities arising from an anticipated acceleration of economic growth. In the meantime, an industry…

Interview

Innovative solutions: Ahmed Alkholifey, Governor, Saudi Arabian Monetary Authority (SAMA), on strengthening the sector through new policies and technology
OBG
plus

Interview:Ahmed Alkholifey In what ways are monetary tools being implemented in order to help reduce the impact of US Federal Reserve interest rate hikes? AHMED ALKHOLIFEY: The benefits of the riyal-dollar peg far outweigh the effects of higher interest rates from the US Federal Reserve. Our pegged exchange rate – which has been in place since 1986 – has provided stability and certainty for domestic businesses in an oil-dominant economy. Additionally, we have a wide range of macroprudential…

Interview

Søren Nikolajsen, Managing Director, Alawwal Bank, on: integrating technologies amid consolidation Joining forces
OBG
plus

Interview:Søren Nikolajsen When is the merger between Alawwal Bank and the Saudi British Bank likely to be finalised? SØREN NIKOLAJSEN: The merger process is running on track. We are currently working through regulatory and shareholder approvals, and continue to expect legal completion during the first half of 2019. Full integration, however, will take longer. The integration of IT systems will take careful planning with a very close eye on making sure our customers continue to receive…

Overview

Fintech revolution: Tech solutions are driving the evolution of the sector landscape – Saudi
OBG
plus

Once reserved for ambitious start-ups and industry-leading operators, financial technology (fintech) has caught the attention of private sector firms and government planners alike, becoming a regular feature in budget speeches and development plans. As fintech plays a larger part in the lives of consumers, investors have come to recognise its growth potential. Tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and by some 30% in 2017 alone. Fintech is rapidly advancing across global markets. While the concept was pioneered in developed countries, the fluidity of international…