SABB & Alawwal merge to create KSA’s third largest bank

Lubna S. Olayan, chair of SABB.
Updated 17 June 2019

SABB & Alawwal merge to create KSA’s third largest bank

SABB and Alawwal Bank have created Saudi banking history by legally combining their businesses. Following regulatory and shareholder approvals, the banks have now become a single listed company, creating the third largest bank by assets in Saudi Arabia. The two banks will continue to operate a normal service while work continues to fully integrate their products and services. 

Lubna S. Olayan, chair of SABB, said: “We have combined two great banks, each with a rich history and legacy of playing key roles in the Kingdom’s development. Now our size, enhanced capabilities and fantastic talent will help us build on that history and legacy to become the bank of choice for a modern Saudi Arabia. We will be the best place to bank and the best place to work in the Kingdom, for a new generation of Saudi men and women and for the new era of development under Vision 2030.” 

The combined bank will cement its position as a top-tier Saudi financial institution, with total revenue of SR10.9 billion ($2.9 billion), more than 1 million retail customers and the second largest corporate bank by assets. 

Joining the two banks is expected to create a significant retail and wealth management business, with greater resources to innovate and connect a young, tech-savvy population to a digital banking experience. 

David Dew, managing director of SABB, said: “The combination of SABB and Alawwal Bank creates huge potential for our customers and staff. The increased scale and capacity will allow us to support the growing needs of our diverse customer base, while also providing unrivaled international connectivity for retail, corporate and institutional clients. Our focus now is on our customers while at the same time completing the integration process and executing our vision of being the leading international bank in the Kingdom.” 

The combined bank has SR257 billion in total assets, SR168 billion in customer loans and SR195 billion of customer deposits. It will deliver long-term shareholder value by combining the best of SABB and Alawwal Bank, while capitalizing on its long-term strategic partnership with HSBC Holdings PLC to provide an international banking experience in Saudi Arabia.

A new board and leadership team are in place, overseeing the integration of the two banks, which is expected to take between 18 and 24 months.


UAQ, Alinma close real estate fund at $4.5bn

Updated 07 December 2019

UAQ, Alinma close real estate fund at $4.5bn

Umm Alqura Company for Development and Construction (UAQ) and Alinma Investment Company announced the successful completion of the launch of the Makkah Real Estate Development Funds, with an investment value exceeding SR17 billion ($4.5 billion). 

The funds are invested in seven hotel towers and two commercial complexes that will be developed within the King Abdul Aziz Road (KAAR) project in Makkah. It is one of the most significant developmental and urban development projects in the Makkah region. The project includes multiple options including housing and shopping, and provides easy mobility and means of transportation between the project facilities and the central area of the Holy Mosque.    

Yasser Abuateek, CEO of UAQ, said: “This strategic agreement is the first of several diverse investment activities designed to attract leading investment institutions. It confirms the appeal of investing in KAAR, an attractive destination for long-term investments, as well as the trust of the investment and financing community.

“This partnership also sheds light on the strength of Alinma Investment and its success in managing real estate funds, which makes it the ideal partner for implementing the project’s development and urban plan. The project aspires to become one of the modern landmarks in Makkah.”

Abuateek added: “By successfully attracting investments valued at SR17 billion, we will make progress in line with the execution plan for several diverse projects, especially since we have already reached several major milestones, including completion of the pouring and construction of all the concrete blocks for the Makkah Metro tunnels, while in addition we have completed nearly 50 percent of the bridges. Currently, we are working on completing all the unprecedented infrastructure projects that followed the demolition phase, which represent a transformation in the investment, development and preparation of the project’s lands, making it more attractive for development and creating new choices that help upgrade the quality of life for Makkah visitors and residents.”

Acting CEO of Alinma Investment Mazin bin Fawaz Baghdadi said: “We are very happy with the success of the Alinma Real Estate Development Funds together with our partner UAQ. This investment, with the large sum of capital, will play a major role in fulfilling the objectives of the finance sector, while our partnership will contribute to increasing the capacity to accommodate pilgrims and visitors through implementing urban developmental projects in the Makkah region.”

“The funds’ investment objective is to achieve long-term capital growth through the development of the superstructure in various parts of the King Abdul Aziz Road project in Makkah, which are: Five-star international hotels (Taj Hotel and Kempinski Hotel), four-star hotels (Hilton Embassy), three-star hotels (Hilton Garden Inn), apartments (Kempinski Residence), and two malls,” added Baghdadi.