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NCB, Samba Move Forward with Major Merger Plan

NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)
NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)
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NCB, Samba Move Forward with Major Merger Plan

NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)
NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)

Samba Financial Group and National Commercial Bank (NCB) are moving forward at a quick pace with the biggest merger of its kind in the Middle East.

Saudi Arabia's Capital Market Authority (CMA) gave the green light for NCB to increase its capital from SAR30 billion ($8 billion) to SAR 44.7 billion ($11.9 billion), through issuing 1.478 billion ordinary shares.

The move aims to merge Samba Financial Group into NCB by transferring the former's assets and liabilities to the latter under share swap.

NCB will publish the capital hike circular within sufficient time before holding its extraordinary general meeting.

The market regulator approved the proposed offer timetable, as well as the publication of the merger offer submitted by NCB. The offer will be published to Samba shareholders within sufficient time before holding its extraordinary general meeting.

If NCB shareholders approve the capital increase, and Samba shareholders accept the merger offer in their extraordinary general meetings, the new shares will be issued to Samba shareholders who are registered at the Securities Depository Center (Edaa).

In addition, Samba shares will be delisted from Tadawul after the merger decision becomes effective.

CMA said shareholders must be informed of the circular and the offer and should study them carefully in order to reach the right decision when voting.

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Despite Global Challenges, Saudi Arabia Continues Economic Diversification Efforts

Riyadh (SPA)
Riyadh (SPA)
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Despite Global Challenges, Saudi Arabia Continues Economic Diversification Efforts

Riyadh (SPA)
Riyadh (SPA)

As global economic challenges intensify—driven by fluctuations in interest rates, trade policies, and geopolitical tensions—Saudi Arabia continues to advance steadily towards diversifying its economy through its Vision 2030.
This ambitious initiative has bolstered key sectors such as tourism, industry, and technology, leading to significant progress, despite the ongoing need for further reforms and investments to ensure sustainability and competitiveness.
In this context, S&P Global upgraded Saudi Arabia's long-term sovereign credit rating from “A” to “A+” in March 2024, citing strong growth in the non-oil sector and the development of local capital markets.
Saudi Arabia’s economy regained momentum in 2024, growing by 1.3%, with a notable surge of 4.4% in the fourth quarter—the highest in the past two years. This growth was primarily driven by a 4.3% increase in non-oil activities.
Saudi Arabia is adopting a multi-pronged approach to achieve economic diversification, as confirmed by former International Monetary Fund official Tim Cullen during a virtual seminar hosted by the Saudi Economic Association.
This strategy includes financial market reforms, the introduction of tourist visas, legal system development, the implementation of VAT, and energy price increases.
Efforts are also underway to enhance infrastructure through investments in airports, ports, railways, metro systems, and digital infrastructure, alongside major government projects like Neom and Qiddiya.
“Large-scale projects play a crucial role in achieving economic diversification. They attract foreign direct investment, enhance competition, improve product quality, and increase corporate profits,” Dr. Abdullah Almeer, Assistant Professor of Economics at King Fahd University of Petroleum and Minerals, told Asharq Al-Awsat.
“These projects also accelerate economic transformation and encourage the private sector to actively participate in production,” he explained.
Almeer noted that this strategy is not new to Saudi Arabia, citing significant government investments in the petrochemical sector during the 1970s and 1980s, which prompted the private sector to enter the field and drive its growth.
Economic diversification involves reducing reliance on a single sector as the main source of income—an essential step for resource-dependent economies like Saudi Arabia, given the volatility of oil prices and the global shift towards alternative energy.
Diversification is typically measured by the spread of exports, production, government revenues, and employment opportunities.