Abdullah Al Alami
August 4, 2021
Saudi Central Bank “SAMA” reported that banks’ operating in Saudi Arabia showed an increase in profit by more than 71 percent, or about SR10.43 billion, during the first half of this year 2021. This is what I call positive news.
These figures
represent total profits before zakat and taxes for ten national banks and all
14 foreign branches licensed to operate in Saudi Arabia. This growth is
due to two factors; increase in total income and decrease in operating
expenses compared to the same period last year.
In addition,
interest rates offered by Saudi banks recorded the lowest semi-annual percentage
in seven years. “SAMA” contributed by pumping SR50 billion in June 2020 which
helped boost liquidity. All these factors combined enabled the banking
institutions to provide better credit facilities to the private sector.
Economic
recovery not only brought relief and peace to the banks but also the
financial sector has begun to recover. This is visible in four areas; finance,
insurance, real estate, and services. Banking institutions played an
important role in supporting the private sector through restructuring finances,
maintaining employment levels, and exempting a number of fees for electronic
banking services.
The recent package
introduced by “SAMA” supported efforts to confront Coronavirus pandemic in
various sectors. The prestigious Forbes magazine predicted that the
Kingdom would maintain its lead position among the largest Arab economies in
2021.
