Al Rajhi Bank Leads Saudi Arabia's Banking Sector Surge

Saudi Arabia continues to solidify its position as a financial powerhouse in the Middle East, boasting a significant presence in Forbes Middle East's '30 Most Valuable Banks' list. The Kingdom's banking sector has witnessed a remarkable 25 percent annual increase in cumulative market value, with 10 Saudi banks collectively weighing in at $279.5 billion.

Leading the pack is Al Rajhi Bank, with a market value surge of $21.7 billion over the past year, reaching an impressive $96.6 billion. Following closely is Saudi National Bank, valued at $68.2 billion, securing the second spot on the list.

The latest report showcases the resilience and customer-centric approach of the region's banking giants, compiled based on data from publicly listed financial institutions in the Arab world. Notably, the 30 banks featured in the ranking have seen a collective market value increase to $581.1 billion, marking a 14 percent growth over the previous year.

Gulf entities dominate the rankings, with 26 out of the 30 banks hailing from the Gulf Cooperation Council. This dominance is attributed to the sector's stability amid favorable conditions such as higher interest rates and oil prices.

UAE follows Saudi Arabia in the rankings, with seven banks valued at $128.7 billion, while Qatar secures the third spot with six banks worth $73.6 billion. Abu Dhabi Bank emerges as the third-highest valued bank, with a market capitalization of $41.5 billion.

Collectively, the top three banks in the list represent over 35 percent of the total value of the 30 banks featured. Looking ahead, Fitch Ratings' 2024 outlook report predicts a positive economic outlook for the Middle East, supported by rising interest rates and oil prices, ensuring stable liquidity, profitability, and capital buffers for most GCC banking systems.