SABB, Al-Awwal Possible Merger in Saudi Arabia

SABB, Al-Awwal Possible Merger in Saudi Arabia
TT
20

SABB, Al-Awwal Possible Merger in Saudi Arabia

SABB, Al-Awwal Possible Merger in Saudi Arabia

SABB and al-Awwal Banks have reached an advanced stage of merger negotiations, which is a unique step that proves the strength of the financial sector in Saudi Arabia.

Through two separate announcements on Tadawul, SABB and al-Awwal confirmed that discussions in relation to the possible merger are at an advanced stage and that the boards of both banks have reached a preliminary, non-binding agreement on the share exchange ratio, subject to a number of important steps including completion of confirmatory due diligence, finalization of the merger agreement and agreement on a number of other commercial issues.

Based on this agreement, al-Awwal shareholders would receive 0.485 SABB shares for each al-Awwal Bank share. Based on this ratio and the closing price of SR33.5 per SABB share on 14 May 2018, the merger would value each al-Awwal Bank share at SR16.3 and al-Awwal Bank existing issued ordinary share capital at approximately SR18.6 billion. This represents a premium of 28.5 percent to al-Awwal Bank share price as of 14 May 2018.

Both banks admitted that should the merger become a reality, it would represent an important transaction in the context of developing the Banking Sector of Saudi Arabia, this being a key objective of the Financial Sector Development Program under Vision 2030.

A binding agreement is yet to be entered into between SABB and al-Awwal Bank. Any binding agreement to proceed with the merger will be subject to a number of conditions, including Saudi Arabian Monetary Authority (SAMA), other regulatory authorities, and the shareholders' approval.

SABB and al-Awwal do not expect that the proposed merger will, if completed, result in any involuntary layoff of employees.

In this regard, al-Awwal share price closed at $3.71, against the backdrop of the announcement by the bank that the merger negotiations valued the stock price at $4.3, a 28.5 percent evaluation above its closing price on May 14.

These developments follow last week's launching of Financial Sector Development Program 2020, which is one of the main programs to achieve goals of Vision 2030.

The program’s objectives include creating a diversified and effective financial services sector to support the development of the national economy, diversifying its sources of income, and stimulate savings, finance, and investment by addressing the sector’s challenges.

It is underpinned by three main pillars: enabling financial institutions to support private sector growth, ensuring the formation of an advanced capital market and promoting and empowering financial planning.

These pillars are aligned with the ambitious strategic objectives of Vision 2030 for diversifying the economy, supporting emerging sectors and attracting foreign investments.

Through its first pillar, the program will work on a number of Vision 2030-related initiatives, such as enabling new types of players to enter the market, introducing incentives to the financial sector to finance small and medium-sized enterprises (SMEs) and driving toward a cashless society.

As for the second pillar, it will make the Saudi financial market more attractive to local and international investors through a number of initiatives that will see more diversified investment products and developed legislation.



Apple Expands its Presence in Saudi Arabia with Launch of Arabic Online Store  

A concept image of the Apple Store. (Asharq Al-Awsat)
A concept image of the Apple Store. (Asharq Al-Awsat)
TT
20

Apple Expands its Presence in Saudi Arabia with Launch of Arabic Online Store  

A concept image of the Apple Store. (Asharq Al-Awsat)
A concept image of the Apple Store. (Asharq Al-Awsat)

Apple has officially launched its online store in Arabic for customers in Saudi Arabia, marking a significant step in the company’s expansion strategy for the region. The move also aligns with its plans to open a physical retail store in the Kingdom as part of a broader effort to deepen its regional presence.

According to Deirdre O’Brien, Senior Vice President of Retail and People at Apple, this step reflects the company’s growing commitment to Saudi Arabia and its rapidly expanding customer base.

The Arabic-language store is now accessible through Apple’s website and via the Apple Store app on smart devices.

In an interview with Asharq Al-Awsat, O’Brien expressed strong enthusiasm about bringing the Apple retail experience to Saudi Arabia. She emphasized the company’s longstanding presence in the Kingdom and noted that Saudi customers are deeply passionate about Apple products. This launch, she said, will help strengthen Apple’s direct relationship with communities across the country.

She also explained that both the online store and the upcoming physical location are part of Apple’s broader strategy in the Middle East. The company already operates several retail locations in the United Arab Emirates and continues to see strong demand for its products across the Gulf.

Investing in local economy

When asked about Apple’s investment in the Saudi economy, O’Brien pointed to initiatives such as the Apple Developer Academy, which is focused on nurturing and empowering local talent.

She described the company’s investment as one that aims to inspire individuals and support creativity. By combining Apple’s technology with passionate communities, she said, remarkable things can be achieved.

Apple has tailored the online store to meet the specific needs of Saudi customers. Features include live chat with Apple specialists in Arabic, customizable product options for devices like Mac and Apple Watch, and the ability to engrave AirPods and other accessories in Arabic or with emojis.

O’Brien highlighted the importance of making the full Apple experience accessible to customers in Saudi Arabia both online and in-store. She also noted that Apple offers device trade-in programs to accommodate users from different segments.

With e-commerce on the rise in Saudi Arabia, Apple is aiming to deliver a seamless shopping journey that blends both digital and physical experiences. O’Brien stated that Apple’s retail model has been designed to reflect modern shopping behavior, where customers move easily between online and in-store interactions. Whether a purchase begins online and ends in a store, or vice versa, Apple aims to provide consistent, high-quality support throughout.

Landmark store in Riyadh

Apple’s first physical store in Saudi Arabia is set to open in Diriyah, a UNESCO World Heritage site and a prominent cultural destination in Riyadh.

O’Brien described Diriyah as a unique and special location. She said Apple is committed to ensuring each of its stores reflects the local identity and culture, and that the new store in Saudi Arabia will be no exception.

She encouraged local customers to visit once the store opens, expressing confidence that the experience will be both unique and memorable.

Retail services

Apple is continuing to strengthen its presence in Saudi Arabia by focusing on innovation, engaging more closely with the local community, and delivering a retail experience designed to support and serve users throughout the Kingdom.

The new Arabic online store allows Saudi customers to browse and purchase Apple’s full product lineup. The experience is personalized, offering product recommendations based on the customer’s current devices. Customers can also compare models, access saved items, and track orders directly through the app.

For the first time, Apple is offering free consultations in Arabic and English through the Saudi store website. These sessions allow users to personalize products like AirPods, Apple Pencil, and AirTag with Arabic or English text and numbers, enhancing the individuality of each device.

Apple’s retail offering also includes pre-purchase support through chat and phone to help users find the best product for their needs. Post-purchase, the company provides services like personalized setup, secure data transfer for those switching to iOS, and eSIM activation.

As part of its long-term strategy, Apple has announced plans to open its first flagship retail store in Saudi Arabia by 2026. This store will be the first in a broader rollout of retail locations across the Kingdom.