Saudi Arabia: Prospective Mergers, Acquisitions in Vital Sectors

Cars drive past the Kingdom Centre Tower in Riyadh, Saudi Arabia, January 30, 2018. REUTERS/Faisal Al Nasser
Cars drive past the Kingdom Centre Tower in Riyadh, Saudi Arabia, January 30, 2018. REUTERS/Faisal Al Nasser
TT

Saudi Arabia: Prospective Mergers, Acquisitions in Vital Sectors

Cars drive past the Kingdom Centre Tower in Riyadh, Saudi Arabia, January 30, 2018. REUTERS/Faisal Al Nasser
Cars drive past the Kingdom Centre Tower in Riyadh, Saudi Arabia, January 30, 2018. REUTERS/Faisal Al Nasser

With the increase in the number of mega projects in Saudi Arabia and the economic reforms that have achieved tangible results, experts expected a growth in mergers and acquisitions.

The banking sector would see mergers by the end of 2021, according to the experts, given the volume of financial operations.

Two mergers of local banks are expected to take place in the coming months, while other sectors, such as insurance, real estate and e-commerce are also heading towards the same direction.

Economic Advisor Suleiman al-Assaf told Asharq Al-Awsat that mergers and acquisitions between companies and banks was a prelude to an important stage of work and performance development.

Saudi Arabia is witnessing a modern economic boom under Vision 2030, he emphasized, noting that economic changes would push the Kingdom to the forefront of the international economic scene.

Al-Assaf expected two mergers to take place between Saudi banks, one of which is certain and the other projected soon.

He noted that Saudi banks must keep pace with these developments, which have recently registered one of the largest banking mergers.

“The Saudi economy constitutes 50 percent of the Gulf economy, but Saudi banks account for less than 10 percent of the size of GCC banks in terms of numbers,” he said.

The insurance sector is also likely to witness many mergers, according to Al-Assaf, who pointed to several factors, mainly the large number of companies and the little amount of work, in addition to the financial losses incurred as a result of the pandemic.



Saudi Arabia, Djibouti Sign Agreement to Promote, Safeguard Investments

The event is being held under the patronage of Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud - SPA
The event is being held under the patronage of Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud - SPA
TT

Saudi Arabia, Djibouti Sign Agreement to Promote, Safeguard Investments

The event is being held under the patronage of Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud - SPA
The event is being held under the patronage of Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud - SPA

Saudi Arabia and Djibouti have signed an agreement to encourage and protect mutual investments, marking a significant step in enhancing economic cooperation between the two nations.
The agreement was signed by Saudi Minister of Investment Khalid Al-Falih and Djiboutian Secretary in Charge of Investment and Development of the Private Sector Safia Mohamed Ali Gadileh during the 28th World Investment Conference in Riyadh, SPA reported.

The event is being held under the patronage of Prince Mohammed bin Salman bin Abdulaziz Al Saud, Saudi Crown Prince and Prime Minister.
Both officials praised the agreement, emphasizing its importance in fostering collaboration between the private and government sectors of both countries. They highlighted the agreement’s role in supporting the ambitious investment initiatives currently being pursued by the Kingdom and Djibouti.
The agreement is designed to create a secure and attractive investment environment by offering key advantages such as investment protection, national treatment, fair and equitable treatment, transparency, and access to national courts or international arbitration for dispute resolution.
By ensuring these safeguards, the agreement aims to increase the volume of mutual investments across various sectors and strengthen economic ties between the two nations.