When the price of crude oil began its decline in mid-2014, banking regulators across the GCC examined the liquidity in their respective banking sectors. The centrality of hydrocarbons activity in regional economies means that large alterations to spot prices and futures have the potential to significantly affect the liquidity, and therefore...
Given the drawdown in government deposits and continued sale of government bonds, are you concerned about liquidity constraints in the sector?
Despite the decline in world oil prices and the slowdown in world economic growth, the Saudi economy in general, and the financial sector specifically, have remained in good shape. Real economic growth in 2015 was 3.5%, a slight decline from the 3.6% seen in 2014, but still a very good performance. This growth was balanced, with all sectors...
With three of its domestically licensed institutions in the regional top 10 in terms of net assets, Saudi Arabia’s banking sector is one of the largest and most vibrant in the Middle East. Historically it has thrived on the rise of high-value lending derived from the government’s infrastructure programmes, but recent years have also seen local...
Collectively, the Saudi Arabian insurance industry has seen five years of double-digit growth in both revenue and net profit. However, the positive performance of a few of the Kingdom’s largest insurers masks more modest results from many of its smaller firms, some of which have accumulated debts over many years. Although industry experts believe the overall outlook is positive for a country...
While Saudi Arabia is a regional leader in mutual fund activity and has led the recent GCC expansion of the segment in terms of both fund classes and volumes, growth has been less brisk in areas such as private equity and venture capital. Recent years, however, have seen momentum build, driven by increased private sector interest and the government’s determination to nurture alternative...
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