With the imminent announcement of the start of the operations of Saudi Samba and the National Commercial Bank (NCB) next month, Samba’s Chairman Eng. Ammar Alkhudairy said that the merger would enhance the ability of the new bank to produce and distribute new products and keep pace with the Saudi economic growth within Vision 2030.
During a meeting on Tuesday organized by the Financial Knowledge and Communication Center (Mutamim), AlKhudairy stressed that no employee would be dismissed as a result of the merger, noting that the market value of the two banks would rise by 40 to 50 percent as of the announcement.
Member of the Board of Directors of the Saudi Financial Society, Talaat Hafiz, underlined the importance of the merger in improving the quality of banking services and expanding the product base, as well as creating a great scope for innovation and strengthening the ability to overcome financial challenges facing giant and large entities.
Hafiz noted that the merger came in line with the requirements of the Kingdom’s Vision 2030, which includes 13 programs and mega projects in terms of quality and funding needed for NEOM, The Line, The Red Sea, Qiddiya and others.
Such large projects require large sums, which cannot be provided by medium or small financial entities, which means that this merger will have an impact in supporting mega projects in energy, entertainment, tourism and sustainable development, he emphasized.
In comments to Asharq Al-Awsat, Hafiz said the new entity would confirm the success of the attempts to create an added value for the Kingdom’s economy and development, in light of global economic and financial challenges.
With regard to the impact of this merger on attracting foreign direct and indirect investments, he said: “Attracting investments certainly requires a large market and sources of financing; thus, an entity such as the new merged bank will help support local and foreign investors, and the interest will be reciprocal in view of the size of the combined assets, which are estimated at 837 billion riyals (USD 223.2 billion).”
