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Saudi National Bank Says Credit Suisse Crisis Has No Impact on Growth Plans

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SNB Logo
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Saudi National Bank Says Credit Suisse Crisis Has No Impact on Growth Plans

SNB Logo
SNB Logo

In light of the repercussions of the crisis experienced by the Credit Suisse Group, the second largest bank in Switzerland, which has been operating for 167 years, the Saudi National Bank announced on Monday that any change in the fair value of its investment in the Swiss group would not affect its financial expectations and plans for the current year, disclosing that its total exposure should not exceed half a percentage point of its total assets.

“The Saudi National Bank’s total assets exceed SR945 billion. SNB remains comfortably above all prudential thresholds and continues to enjoy healthy capitalization and liquidity. SNB remains focused on its core strategy of growth in Saudi Arabia, which is among the fastest growing countries within the G20,” the bank said in a statement.

In November 2022, SNB made a SR5.5 billion, or 9.88%, investment in Credit Suisse as a financial investment allocation within SNB’s investments portfolio as part of a capital raising exercise by the global investment and financial services firm based in Switzerland.

In relation to this investment, SNB disclosed as of December 2022, SNB’s investment in Credit Suisse constituted less than 0.5% of SNB’s total assets, and around 1.7% of SNB’s investments portfolio.

The troubled Credit Suisse intended a few days ago to borrow the equivalent of $54 billion from the Swiss Central Bank, and decided to take decisive measures proactively to enhance its liquidity. Swiss UBS submitted a purchase offer of $3.23 billion to save the situation.

In comments to Asharq Al-Awsat, financial market analyst Hamad Al-Olayan said that the SNB announcement could be taken in two parts: the first is negative, in terms of acknowledging the loss, which is commendable, as he put it, and the second is positive, which is that the Credit Suisse problem was now over.

He added that the opportunities currently available in Saudi Arabia and the Gulf region were much better than those in Europe and America due to factors including the Russian-Ukrainian war, inflation, and inflated interest rates.

Saudi banks are considered among the best in the world due to the implementation of international standards, including Basel 3 requirements, Al-Olayan underlined.

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Egypt’s Tourism Minister: We’ve Agreed on Future Initiatives with Saudi Arabia

A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)
A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)
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Egypt’s Tourism Minister: We’ve Agreed on Future Initiatives with Saudi Arabia

A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)
A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)

Egyptian Tourism Minister Sherif Fathy told Asharq Al-Awsat that he and Saudi Tourism Minister Ahmed Al-Khateeb have agreed to collaborate on several tourism initiatives.

These include joint marketing efforts, shared tourism programs, environmental protection measures, and promoting specific types of tourism in the Red Sea.

Fathy recently visited Riyadh, where he met with Al-Khateeb and engaged with Saudi business leaders. They discussed ways to promote tourism between their countries and increase visitor exchanges.

During his visit to the United Nations World Tourism Organization (UNWTO) regional office in Riyadh, Fathy stated that the office’s presence in Saudi Arabia enhances the organization’s work in the region and improves communication with other countries.

He confirmed that they plan to develop and implement the agreed initiatives in the near future.

Fathy highlighted that the Middle East is a key player in global tourism and deserves a dedicated office to support all countries in the region. This effort aims to boost collaboration and promote the Middle East as a top destination for travelers.

Tourism, National Economy: A Path to Sustainable Growth

Samer Al-Kharashi, Director of the UNWTO regional office for the Middle East, stated that the office supports 13 countries in the region, with Egypt being a key member.

He highlighted that the recent visit by Egypt’s Minister of Tourism and Antiquities, who serves as Vice President of the regional committee, creates opportunities for collaboration.

This partnership aims to boost tourism’s role in the national economy, create jobs, and promote sustainable practices that protect the environment.

Speaking to Asharq Al-Awsat, Al-Kharashi emphasized the potential for cooperation with Egypt, which has a rich tourism history and many ancient sites. He noted that the regional office has the expertise to assist member countries.

Al-Kharashi expressed optimism about the discussions, which covered various opportunities for joint projects that would benefit both Egypt and the wider region.

Strengthening Bilateral Relations

Fathy’s visit to the UNWTO regional office aims to enhance bilateral relations, as Cairo actively seeks to develop its tourism sector through international collaboration.

During their meeting, Fathy and Al-Kharashi addressed key issues facing Egypt’s tourism sector, including challenges and growth opportunities. They explored future cooperation, particularly in tourism training, improving services, and increasing investments.

Egypt ranks first in Africa, fifth in the Middle East, and 63rd globally on the Travel and Tourism Development Index.

The UNWTO regional office in Riyadh is the first of its kind outside the organization’s headquarters, dedicated to supporting member states in the Middle East.

The office focuses on promoting tourism education, improving infrastructure, and fostering sustainable tourism while preserving the region’s cultural and environmental heritage.