Banks

Changing consumer habits amid COVID-19 accelerates decline of Saudi Arabia bank branches

Bank branches operating in Saudi Arabia have reduced by 4.6% y/y in Q2 2021 to 1,969 branches (SAMA). The number of branches had been on a year-on-year declining trend since Q3 2020, with the current quarter posting the highest decline. The number of ATMs has also decreased by 9% y/y in Q2 2021. Operational considerations and uptake of digital banking, accelerated by COVID-19, seem to have contributed to the trend. Total Bank Branches in Saudi Arabia Source: SAMA According to...

[Gulf Business] Alternative financing options for the GCC

The article originally appeared in Gulf Business. Traditional financing options, such as bank funding, continue to rule the roost in the Gulf region. Rising oil exports led to large government revenues, which usually ended up as deposits in the region’s banking system and constituted a significant source of low-cost funds. However, the current lower oil price environment and the resulting budgetary deficits have forced market participants to look at alternative sources of funding, such as private equity, venture capital, peer-to-peer...