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Merger of Two Largest Commercial Banks in Saudi Arabia Ends

Merger of Two Largest Commercial Banks in Saudi Arabia Ends
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Merger of Two Largest Commercial Banks in Saudi Arabia Ends

Merger of Two Largest Commercial Banks in Saudi Arabia Ends

The boards of directors of the two largest banks in Saudi Arabia, in terms of capital, have announced their final decision to formally end the year's discussions on their merging.

This announcement ends the idea of forming the largest commercial bank in Saudi Arabia and the region.

Following the end of transactions on Monday, the Saudi Stock Exchange (Tadawul)announced Saudi Arabia’s biggest lender by assets, National Commercial Bank (NCB), and Riyad Bank’s decision to end preliminary merger talks and not to continue with the merger study.

The capital of each of the two banks amounts to SAR30 billion (eight billion dollars), and they are considered the most expanding banks, in terms of the number of branches all over the country, according to statistics carried out in October.

The NCB comes second after Al-Rajhi Bank with 421 branches in various Saudi regions, and Riyadh Bank comes third with 312 branches.

The NCB also has 3,724 automated teller machines (ATMs) in the country’s vast regions, following the leading Al Rajhi Bank, while Riyad Bank comes third, with 2,559 ATMs.

Although the two giant banks did not provide any reason for their decision, yet, suggestions tell they have decided to proceed with their strategic vision project, separately.

They launched preliminary merger talks in December 2018.

The two banks provide high financial performance and outcomes. They also score many achievements in the level of products provided and acquire a significant share in the country’s bank financing market.

NCB said it is committed to becoming the region’s leading financial services group by “implementing its sustainable growth strategy.”

Riyad Bank, for its part, said it will continue to develop its products, services, and technologies that “serve the interests of its customers, shareholders, and employees.”

According to the expert in the banking industry, Dr. Salah al-Shalhoub, the failure to reach an agreement may be due to the two banks’ inability to agree on the strategic roles targeted.

He pointed out that the Kingdom is a huge market, especially its finance sector, since there is a little number of existing banks, especially in terms of individual services versus the real market need.

In a statement on Monday, Shalhoub encouraged each bank to go for its preferred options, stressing the importance of raising its capital without the need to merge.

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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)

Saudi Arabia has made history by uniting the 193 member states of the World Intellectual Property Organization (WIPO) to adopt the Riyadh Treaty on Design Law. This landmark achievement, realized after two decades of deliberation, underscores the Kingdom’s leadership in enhancing the global intellectual property system.

The announcement came at the conclusion of the Riyadh Diplomatic Conference on the Design Law Treaty, a rare event for WIPO, which has not held a diplomatic conference outside Geneva for more than a decade. It was also the first such event hosted in Saudi Arabia and the Middle East, representing the final stage of negotiations to establish an agreement aimed at simplifying and standardizing design protection procedures across member states.

Over the past two weeks, intensive discussions and negotiations among member states culminated in the adoption of the Riyadh Treaty, which commits signatory nations to a unified set of requirements for registering designs, ensuring consistent and streamlined procedures worldwide. The agreement is expected to have a significant positive impact on designers, enabling them to protect their creations more effectively and uniformly across international markets.

At a press conference held on Friday to mark the event’s conclusion, CEO of the Saudi Authority for Intellectual Property Abdulaziz Al-Suwailem highlighted the economic potential of the new protocol.

Responding to a question from Asharq Al-Awsat, Al-Suwailem noted the substantial contributions of young Saudi men and women in creative design. He explained that the agreement will enable their designs to be formally protected, allowing them to enter markets as valuable, tradable assets.

He also emphasized the symbolic importance of naming the convention the Riyadh Treaty, stating that it reflects Saudi Arabia’s growing influence as a bridge between cultures and a global center for innovative initiatives.

The treaty lays critical legal foundations to support designers and drive innovation worldwide, aligning with Saudi Arabia’s vision of promoting international collaboration in the creative industries and underscoring its leadership in building a sustainable future for innovators.

The agreement also advances global efforts to enhance creativity, protect intellectual property, and stimulate innovation on a broader scale.

This achievement further strengthens Saudi Arabia’s position as a global hub for groundbreaking initiatives, demonstrating its commitment to nurturing creativity, safeguarding designers’ rights, and driving the development of creative industries on an international scale.

The Riyadh Diplomatic Conference, held from November 11 to 22, was hosted by the Saudi Authority for Intellectual Property and attracted high-ranking officials and decision-makers from WIPO member states.