Page 164 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

148 Dubai & Co.

Table 5.2 shows the leading banks in Saudi Arabia and, where
relevant, the associated international bank. 18
TABLE 5.2

Leading Banks in Saudi Arabia

Rank Name International Partner
1 National Commercial Bank (NCB)
2 Samba (formerly the Saudi Citigroup (since divested)
American Bank)
3 Al Rajhi Bank
4 Bank Al Riyad
5 Banque Saudi Fransi Crédit Agricole
6 Arab National Bank
7 SABB (formerly the Saudi British Bank) HSBC
8 Saudi Hollandi Bank ABN Amro
9 Bank Al Jazira
10 Bank Al Bilad

While 7 of the top 10 retail banks are purely local, the
international JVs control significant market share and influence.

How the JV Model Evolved
For much of its history, the Saudi banking market was dominated
by international banks. The first foreign bank was Algemene Bank
Nederland (ABN)—a forerunner of ABN Amro. Established in
Saudi Arabia in 1926, ABN enjoyed a virtual monopoly until a
handful of foreign banks—Banque de l’Indochine (now part of
Crédit Agricole), Arab Bank Limited, the British Bank of the Middle
East (forerunner of SABB), and the National Bank of Pakistan—
entered between 1947 and 1950. World War II had ended, and
although Saudi Arabia was not yet a very wealthy place, oil was
being exported and capital was flowing in.
In 1952, the Saudi Arabian Monetary Agency (SAMA) was estab-
lished to regulate the fast-expanding banking market. Several banks—
including the First National City Bank of New York, the forerunner of
19
Citigroup—entered the market in the 1950s. Domestic banks such as
National Commercial Bank (NCB) and Riyad Bank sprang up during
this period of modernization and growth. Banks played a role in