First Abu Dhabi Bank mulls Saudi Arabia venture
ABU DHABI: First Abu Dhabi Bank is “seriously studying” expanding into Saudi Arabia, either through acquisitions or a new licence, its chief executive officer told Al Khaleej newspaper.
All opportunities for local and foreign acquisitions were open to the bank, said Abdulhamid Saeed.
First Abu Dhabi Bank was created with the merger of National Bank of Abu Dhabi PJSC and First Gulf Bank PJSC, the United Arab Emirates’ two largest lenders by market value.
International and regional banks are seeking to expand in Saudi Arabia as the kingdom prepares to sell hundreds of state assets to help restructure its economy hurt by oil’s decline.
Citigroup Inc last week received an investment banking licence from the country’s regulator after 13 years, while Emirates NBD PJSC, Dubai’s biggest bank, in January got approval to increase the number of branches to four from one.
As well as welcoming foreign lenders, Saudi Arabia’s banking sector is also facing consolidation.
HSBC Holdings Plc and Royal Bank of Scotland Group Plc’s Saudi Arabia ventures last week said they were exploring a potential merger to create the kingdom’s third-largest lender with US$78 billion (RM339.3 billion) in assets. Bloomberg