Banking

The Kingdom’s banking sector started 2020 on a promising note, with 13 local banks serving a population of over 30m people. However, low oil prices and the disruptive effects of the Covid-19 pandemic are likely to undermine asset growth over the course of the year, though the Kingdom’s banks have previously demonstrated the ability to remain profitable despite difficulties. Looking to the longer term, banks are likely to venture beyond the competitive corporate and retail segments and develop their offering in underserved areas of the market, such as lending to smaller enterprises and microfinance. This chapter contains interviews with Ahmed Alkholifey, Governor, Saudi Arabian Monetary Authority; and Tareq Al Sadhan, CEO, Riyad Bank.