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  • 950,000 SMEs Registered in Saudi Arabia — Jadwa Investment
     

    A recent report by Jadwa Investment highlights the progress being made in the development of Small and Medium-Sized Enterprises (SMEs) in Saudi Arabia and the significance that these crucial elements of a diverse economy can have on sustainable growth in the Kingdom. Saudi Arabia is focusing on SME development with its Vision 2030 social and […]

     
  • Visa Launches Apple Pay in Saudi Arabia as Executives Continue Probe of Absher App
     

    Visa on Tuesday launched Apple Pay in Saudi Arabia, allowing its Kingdom-based cardholders to make payments using their Apple devices, according to reports. Early reports via Apple Insider show “compatibility with previously confirmed financial partners including the country’s largest institution, the National Commercial Bank….Separately, individual banks like Al Rajhi confirmed access to the service in release notes accompanying […]

     
  • Ambitious Saudi Entertainment Push Announced by GEA’s Turki al-Sheikh
     

    Saudi Arabia is looking to maintain heavy investment in the entertainment sector in 2019, according to comments made by a top Saudi official, as it looks to make good on key Vision 2030 economic reforms. Reuters reports that Saudi Arabia’s recently named chairman of the General Entertainment Authority, Turki al-Sheikh, said the Kingdom would put on […]

     
  • Kingdom’s Finances Trending Positively as Higher Oil Enables Government to Increase Spending by 7% in 2019
     

    Saudi Arabia’s Minister of Finance told reporters in Riyadh on Sunday the Kingdom would accelerate state spending next year in what he hopes will be a clear message to the private sector that the government is determined to support economic growth, according to reports. Saudi Arabia may spend SAR 100 billion ($26.6 billion) more than originally planned in 2019 […]

     
  • PIF Selects Goldman Sachs, Bank of America Merrill Lynch and Michael Klein Selected to Advise on SABIC sale
     

    Saudi Arabia’s sovereign wealth fund has chosen Goldman Sachs, Bank of America Merrill Lynch and Michael Klein as advisers on its planned sale of a stake in petrochemicals firm SABIC to Saudi Aramco, sources familiar with the process told Reuters. Citigroup Inc has reportedly won the mandate to advise Saudi Basic Industries Corp (SABIC). Reuters previously […]

     
  • 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 […]

     
  • Saudi’s SAMA Warns Against Cryptocurrencies
     

    The Saudi government has outlawed using and trading in Bitcoin, citing the high risk and negative consequences in the cryptocurrency. Saudi Arabia’s Monetary Agency (SAMA) warned against trading in digital currencies for “their negative consequences and high risks on traders as they are out of government supervision.” SAMA continued that cyptocurrencies like Bitcoin “are illegal in the kingdom […]

     
  • Saudi Aramco Weighs Global Bond Sale to Finance Purchase of Sabic Stake from PIF
     

    Saudi Aramco is considering tapping the international bond market for the first time, Bloomberg and the WSJ report, in order to finance the acquisition of petrochemical giant Sabic. The move into global capital markets could offer an alternative to an initial public offering, according to Bloomberg, citing people familiar with the talks. ‘The plans for a bond, […]

     
  • Reports: Saudi Aramco Interested in Buying Controlling Stake in Sabic, Possibly Up to 70%; IPO Timeline in Question
     

    Saudi Aramco aims to buy a controlling stake in petrochemical maker SABIC, possibly up to 70% of the company that is currently controlled by the Public Investment Fund (PIF), according to reports. Sabic, as the chemical company is known, carries a market value of over $100 billion. Amin Nasser, Aramco’s chief executive officer, said in an […]

     

MUST-READS

  • Saudi Arabian Banks Recovering Well from Pandemic Pressures

    The pandemic’s impact on Saudi Arabian banks has been contained and pressures on the operating environment have largely eased, says Fitch Ratings in a new peer review. The sector’s economic activity is recovering well, supported by soaring oil prices that underpin government spending. The banks’ financial metrics have mostly stabilised and Fitch expects these to be further supported by higher interest rates in 2022–2023.

  • Saudi Arabia’s banks to benefit from expected rise in interest rates, says S&P

    For every increase in the benchmark interest rate of 100 basis points, banks in the kingdom are expected to record a rise in net profit of 13 per cent and return on equity of 1.5 percentage points, S&P Global Ratings credit analyst Puneet Tuli said in a report on Monday.

  • Saudi IPO: Schlumberger-Backed Arabian Drilling Hires Banks for Share Sale

    Arabian Drilling Co., a Saudi oilfield-services firm partly held by Schlumberger NV, hired banks for its planned initial public offering and also is mulling a merger with ADES International Holding Plc, according to people familiar with the matter. Arabian Drilling appointed the Saudi unit of HSBC Holdings Plc and SNB Capital as financial advisers for a planned share sale on the Riyadh stock exchange, the people said, asking not to be identified because the information is private. The deal could value the company at more than $1.4 billion, the people said.

  • Saudi Arabia’s biggest lender hires banks for sustainable sukuk – document

    Saudi National Bank, the kingdom's biggest lender, has mandated banks to arrange investor meetings ahead of a planned issuance of inaugural sustainable Islamic bonds or sukuk, a document seen by Reuters showed. SNB has mandated HSBC as sole ESG structuring agent, and Citigroup, Emirates NBD Capital, Goldman Sachs, HSBC, Mizuho Securities and SNB Capital as joint lead managers and joint bookrunners to arrange investor meetings starting on Monday, the document said.

  • Saudi banks’ credit to the private sector goes up by $3.4bln

    Saudi commercial banks’ credit to the private sector rose by SR12.7 billion ($3.4 billion) in November when compared to the previous month, Saudi Central Bank data showed. In percentage terms, however, the increase was a marginal 0.6 percent.

  • Saudi Arabia to allow more digital banks, central bank governor says

    Saudi Arabia will give operating licences to more digital banks, Central Bank Governor Fahad al-Mubarak said on Thursday at a financial forum in Riyadh. The kingdom this year issued licences for its first digital banks, STC Bank and Saudi Digital Bank.

  • Most Saudi consumers are open to switching banks, says BCG

    Low interest rates, limited products and poor customer service are among the main reasons why customer leave their banks. At the same time, consumers are increasingly impressed with the ease of switching, lauding the speed at which accounts can be opened through online channels, as well as the range of products (loans, savings etc) they can order through their smartphones.

  • Moody’s affirms ratings of nine Saudi Arabian banks and changes outlook to stable

    Moody's said it affirmed the banks’ long-term deposit ratings as well as the senior unsecured and subordinated debt ratings of their affiliated entities. The banks include Saudi National Bank, Al Rajhi Bank, Riyad Bank, Banque Saudi Fransi, Arab National Bank, Bank AlBilad, The Saudi Investment Bank, Bank Al-Jazira and Gulf International Bank – Saudi Arabia.

  • Market value of Saudi banks nears SR1tn mark

    The monitoring report also revealed that deposits in the Saudi banks maintained their levels for the fourth consecutive month. The total deposits amounted to about SR2.03 trillion, of which SR1.31 trillion is registered as demand deposits.

  • Saudi Aramco taps banks for $12-14 bln gas pipeline loan – sources

    Aramco could raise at least $17 billion from the sale of a significant minority stake in its gas pipelines, sources have previously told Reuters. The stake would be offered with a loan financing package already in place, worth about 80% of the price.