Positive Signs in Saudi Arabia

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.