LONDON: The largest global banks in London plan to move about 9,000 jobs to the continent in the next two years, public statements and information from sources show, as the exodus of finance jobs starts to take shape.
Last week, Standard Chartered and JPMorgan were the latest global banks to outline plans for their European operations after Brexit. They are among a growing number of lenders pushing ahead with plans to move operations from London.
Goldman Sachs Chief Executive Lloyd Blankfein said in an interview on Friday that London’s growth as a financial center could “stall” as a result of the upheaval caused by Brexit.
Thirteen major banks including Goldman Sachs, UBS and Citigroup have given an indication of how they would bulk up their operations in Europe to secure market access to the EU’s single market when Britain leaves the bloc.
Talks with financial authorities in Europe have been underway for several months but banks are increasingly firming up plans to move staff and operations.
“It is full speed ahead. We are in full motion with our contingency planning,” said the head of investment banking at one global bank in London. “There is no waiting.”
Although the moves would represent about 2 percent of London’s finance jobs, Britain’s tax revenues could be hit if it loses rich taxpayers working in financial services.
The Institute for Fiscal Studies (IFS) — a think tank focused on budget issues — said in a report on Thursday the rest of the population would have to pay more if top earners move.
The exact number of jobs to leave will depend on the deal the British government strikes with the EU. Some politicians say bankers have exaggerated the threat to the economy from Brexit.
The plans of large banks such as Credit Suisse and Bank of America and many smaller banks are still unknown.
Frankfurt and Dublin are emerging as the biggest winners from the relocation plans. Six of the 13 banks favor opening a new office or moving the bulk of their operations to Frankfurt. Three of the banks will look to expand in Dublin.
Deutsche Bank said on April 26 up to 4,000 UK jobs could be moved to Frankfurt and other locations in the EU as a result of Brexit — the largest potential move of any bank.
JPMorgan last week announced plans to move hundreds of roles to three European cities in the next two years. This is still significantly lower than the 4,000 figure JPMorgan CEO Jamie Dimon first estimated before the vote.
Estimates for possible finance-related job losses from Brexit are on a broad range from 4,000 to 232,000, according to separate reports by Oliver Wyman and Ernst & Young.
Banks are treading carefully, enacting two-stage contingency plans, to avoid losing nervous London-based staff as they work out how many jobs will have to eventually move.
This suggests that the numbers could potentially rise further depending on what deal is eventually negotiated between the EU and Britain.
This first phase involves small numbers to make sure the requisite licenses, technology and infrastructure are in place, while the next will depend on the long-term strategy of a bank’s European business.
The Bank of England (BoE) has given finance companies until July 14 to set out their plans.
One senior bank executive at a large British bank said forcing companies to make a plan makes it more likely that they will follow through.
“It is an unintended consequence, but the more and more preparation you do the more likely you are to execute those plans,” the executive said.
HSBC Chief Executive Stuart Gulliver said this week that the bank’s previous estimate that around 1,000 staff would move to Paris following Britain’s vote to leave the EU, was based on a “hard Brexit” scenario.
Most banks are working on the assumption that this is the most likely outcome of the separation talks and would involve losing access to the single market with no special financial services deal and no transition period.
9,000 finance jobs on the line due to Brexit
9,000 finance jobs on the line due to Brexit
Closing Bell: Saudi TASI closes lower at 11,163 amid mixed performance
- MSCI Tadawul 30 Index slipped 0.36% to end at 1,428.86
- Parallel market Nomu rose 0.34% to finish at 27,341.63
RIYADH: Saudi Arabia’s Tadawul All Share Index fell 0.35 percent to close at 11,163.96 on Monday, weighed by losses in several blue-chip stocks.
Trading activity remained robust, with turnover reaching SR7.3 billion ($1.9 billion), with the market recording 118 advancers versus 133 decliners.
The MSCI Tadawul 30 Index slipped 0.36 percent to end at 1,428.86, while the parallel market Nomu rose 0.34 percent to finish at 27,341.63.
Fawaz Abdulaziz Alhokair Co. led the main market gainers with a 9.96 percent rise to SR24.62.
National Metal Manufacturing and Casting Co. followed with a 9.29 percent gain, closing at SR16.83.
Other notable performers included Buruj Cooperative Insurance Co., which advanced 7.40 percent to SR18.00, and The Mediterranean and Gulf Insurance and Reinsurance Co., up 7.16 percent at SR20.06.
On the downside, Al Maather REIT Fund recorded the steepest decline, falling 3.33 percent to SR9.01.
Etihad Etisalat Co. dropped 3.10 percent to SR59.30, while MBC Group Co. slipped 2.99 percent to SR35.70. Rasan Information Technology Co. also retreated 2.69 percent to close at SR86.90.
On the announcement front, ACWA Power Co. released details regarding its planned capital increase through a rights issue.
The company set the offering price at SR210 per share, with a total of 33,928,570 new shares to be issued.
Following the offering, ACWA Power’s capital will rise from SR7.33 billion to SR7.66 billion, increasing the total number of shares to 766,490,498.
The transaction represents 4.63 percent of the issuer’s existing capital and is valued at SR7.12 billion.
ACWA Power said the proceeds will support its strategy to triple the assets under management by 2030 and strengthen its financial position.
Eligibility for the rights issue will apply to shareholders registered at the end of the second trading day following the date of an extraordinary general assembly.
ACWA Power shares closed up 4.07 percent on Monday at SR256.00, with over 1.1 million shares traded.
Saudi Arabia’s PIF assets rise 18% to $1.15tn as portfolio firms drive growth
- Sovereign wealth fund reported gross revenues of SR413 billion for 2024
- It reported a net profit of SR26 billion in 2024
RIYADH: Saudi Arabia’s Public Investment Fund boosted its total assets to SR4.32 trillion ($1.15 trillion) by the end of 2024, an 18 percent increase compared to the previous year, according to a disclosure filed with the London Stock Exchange.
The sovereign wealth fund reported gross revenues of SR413 billion for 2024, reflecting a 25 percent year-on-year rise. This growth was fueled by solid performance across several portfolio companies, including Savvy, Ma’aden, stc, Saudi National Bank, AviLease, and Gulf International Bank, as well as dividend income from Saudi Aramco.
PIF, often described as the financial engine of Saudi Arabia, plays a central role in advancing the Kingdom’s Vision 2030 goals to diversify the economy and reduce dependency on oil income.
“Long-term projects, that are beginning to mature, are also now generating significantly more revenue,” the disclosure document stated.
Despite global macroeconomic challenges such as high interest rates, inflationary pressure, and select asset impairments, the fund reported a net profit of SR26 billion in 2024.
The filing clarified that the impairments were “primarily related to changes to operational plans and increases in budgeted costs and represent less than a 2 percent reduction in total assets.”
PIF’s cash reserves held steady at SR316 billion, while loans and borrowings rose modestly to SR570 billion, reflecting continued diversification of its funding sources via international capital markets.
In 2024, the fund issued $2 billion in dollar-denominated sukuk and launched its first-ever sterling bond worth £650 million ($825.5 million). It also refinanced a $15 billion revolving credit facility, underlining market confidence in its creditworthiness and long-term investment outlook.
PIF’s debt ratio remained unchanged at 13 percent by the end of the year, the disclosure noted.
“Over 2024, PIF continued to advance its position as one of the world’s most impactful investors, while driving economic transformation in Saudi Arabia,” the document added.
It highlighted strategic progress in sectors such as leisure and tourism, industrial capabilities, capital markets, and the development of new industries.
Among standout performers, AviLease recorded a 350 percent surge in net profit to SR228 million and a 306 percent rise in revenue to SR2.1 billion. The aircraft leasing company expanded its fleet to 189 aircraft, comprising 163 owned, 22 managed, and four on order.
Meanwhile, Alat — another PIF-backed firm — invested SR401 million to establish an AI-driven robotics manufacturing facility in the Kingdom through a joint venture with SoftBank Robotics.
Riyadh leads Saudi Arabia’s commercial real estate growth with 23% rise in office rents
- Average rents for office spaces in Riyadh saw an annual rise of 23%
- Jeddah’s total office stock is expected to rise 1.8 million sq. meters by 2027
RIYADH: Saudi Arabia’s commercial real estate sector is witnessing exponential growth, with rents for Grade A office spaces in the Kingdom’s capital reaching SR2,700 ($719.95) per sq. meter by the end of March, an analysis showed.
In its latest report, global real estate consultancy Knight Frank said average rents for office spaces in Riyadh witnessed an annual rise of 23 percent by the end of the first quarter, driven by the success of government-led initiatives, including the ambitious regional headquarters program.
Strengthening the real estate sector is one of the key goals outlined in Saudi Arabia’s Vision 2030 agenda, as the nation aims to position itself as a leading business and tourism destination by the end of the decade.
The Kingdom’s Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.
“Saudi Arabia’s economic momentum continued to strengthen across key sectors in 2024, underpinned by rising private sector activity,” said Faisal Durrani, partner — head of research for the Middle East and North Africa at Knight Frank.
According to the report, the Kingdom’s Grade A office rents witnessed an occupancy level of 98 percent by the end of March.
Grade B rents grew by 24 percent year on year by the end of the first quarter, while the occupancy level of these spaces stood at 97 percent.
Grade A office spaces command higher rents than the area average, thanks to their prime locations, modern infrastructure, and newer construction.
In contrast, Grade B office spaces are more affordable, offering a lower-cost alternative to Grade A units.
The report further said that around 600 companies have announced plans to establish their regional headquarters by the end of February, significantly boosting demand for prime office spaces.
Saudi Arabia’s regional headquarters program offers benefits to international firms, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities, as well as discounts and support services.
“A total of 14,303 foreign business investment licenses were issued during 2024, a 67 percent increase from 2023, marking the highest annual figure on record and underscoring the sustained appeal of Saudi Arabia to global corporates and investors,” said Durrani.
The analysis added that Jeddah is also experiencing significant growth in the commercial real estate sector, with both Grade A and Grade B occupancies reaching 95 percent by the end of March.
Knight Frank said Grade A office rents in Jeddah reached SR1,280 per sq. meter, marking a 4 percent year-on-year growth, while Grade B office rents grew by 6 percent to reach SR845 per sq. meter.
Jeddah’s total office stock is expected to rise from 1.6 million sq. meters this year to 1.8 million sq. meters by 2027.
“As more companies expand their footprint across Saudi Arabia, Jeddah is attracting a growing number of regional and local firms. This rising interest is being supported by a healthy office development pipeline,” said James Hodgetts, partner — occupier strategy and solutions at Knight Frank.
He added: “Upcoming projects include Jeddah Gate, which is expected to deliver 230,000 sq. meters between 2025 and 2028, and Jeddah Rose, a mixed-use development bringing 25,000 sq. meters of office space to the market by the end of 2025.”
In May, Jeddah Municipality announced 29 new investment opportunities spanning over 1.4 million sq. meters, targeting sectors including commercial, industrial, residential, and recreational.
The package includes 13 commercial opportunities featuring the development and operation of retail shops and commercial complexes across various districts.
In April, a separate report released by credit rating agency S&P Global said that the Kingdom’s retail real estate market is poised for growth in the near term, driven by population growth, expanding tourism, and economic diversification efforts under the Vision 2030 initiative.
S&P Global added that ongoing mega projects and the expansion of international brands are expected to propel further demand for retail space nationwide.
Hospitality overview
According to the study, the average daily rate in Saudi Arabia’s hospitality sector increased by 10.8 percent year on year by the end of March, while revenue per available room increased by 12.3 percent during the same period.
The report said the growth of the Kingdom’s hospitality sector was largely driven by gains in the nation’s holy cities and Riyadh.
In the first quarter of 2025, ADR in Makkah rose by 28.9 percent year on year to SR859, while RevPAR was up by 35.7 percent to SR673.
Citing data from the Ministry of Hajj, Knight Frank said the surge in performance in Makkah reflected heightened demand linked to the rise in issued Umrah visas, which grew by 8.3 percent.
With more than 8,500 rooms under construction across 12 hotel developments, Makkah’s total inventory is set to increase from 63,428 to 71,643 rooms by 2027, the report added.
According to the analysis, ADR in Madinah reached SR891 by the end of the first quarter, representing an 11.8 percent year-on-year rise, while RevPAR rose by 15.1 percent to SR724.
Madinah currently has 20,673 hotel rooms, and an additional 2,100 keys are expected to be delivered by 2027. Major international operators continue to expand their presence, including Hilton and Marriott, with planned openings totaling over 6,000 rooms.
Rua Al-Madinah, a new giga-project situated east of the Prophet’s Mosque, is also poised to reshape the hospitality landscape, with over 47,000 planned hotel rooms.
“These latest figures point to resilient demand amid limited new supply and further highlight Madinah’s pricing strength,” said Amar Hussain, associate partner — research, Middle East at Knight Frank.
He added: “Pilgrim arrivals in the city are expected to reach 30 million by 2030, up from 17.3 million in 2025, reflecting the city’s growing role as a global hub for religious tourism.”
Data Centers
Knight Frank said Saudi Arabia is positioning itself as the Middle East’s leading data hub, with plans to grow its data center market from $1.78 billion in 2023 to $3.2 billion by 2029, representing a compound annual growth rate of 10.1 percent.
The report noted that Saudi Arabia’s total IT capacity is expected to increase from around 250-300 megawatts in 2024 to more than 1,000-MW by 2030, driven by strategic government initiatives and substantial investment in digital infrastructure.
During the LEAP 2025 conference in February, Cathy Mauzaize, US-based software firm ServiceNow’s president for Europe, the Middle East and Africa, said that the company is set to launch data centers in the Kingdom in 2026.
In the same month, Alfanar Global Development also announced a $1.4 billion investment plan to develop four world-class data centers in Saudi Arabia.
Knight Frank added that all tier-one US cloud providers, including Microsoft, Amazon Web Services, Google Cloud, and Oracle, have either launched operations or announced further expansions in the Kingdom.
Amazon Web Services alone has committed $5.3 billion to scale up its cloud services across key cities.
Chinese firms such as Alibaba Cloud and Huawei Cloud have also established a local presence.
“Saudi Arabia is now the fastest growing market for data centers as the country continues its drive toward national digitalization,” said Stephen Beard, global head of data centers at Knight Frank.
He added: “The Kingdom’s development of data center infrastructure has been driven largely by adoption of public cloud and sustained public and private investment, transforming it into one of the top five global AI superpowers — evident in the recent launch of the $100 billion Transcendence AI Initiative.”
Saudi Arabia launched Project Transcendence in November, a $100 billion AI initiative aimed at building data centers, supporting startups, and developing infrastructure.
The initiative promises to bring together expertise, infrastructure, and innovation to position the Kingdom at the forefront of AI advancements.
Saudi banks post 5.4% loan growth in Q1 as lending accelerates
- Alvarez & Marsal report says growth primarily driven by 7.5% increase in corporate lending
- Loan-to-deposit ratio climbed to 106.1%, up from 104.7% in the previous quarter
RIYADH: Net loans and advances across the Saudi Arabia’s 10 largest listed banks rose by 5.4 percent in the first quarter of 2025, underscoring robust lending momentum at the start of the year.
According to Alvarez & Marsal’s latest KSA Banking Pulse report, this growth was primarily driven by a 7.5 percent increase in corporate lending, which continues to represent more than half of total gross loans.
The banking sector’s strong start reflects the wider strength of Saudi Arabia’s economic transformation efforts. Resilient credit growth signals sustained confidence among borrowers, particularly within the corporate sector, where demand for financing remains high amid ongoing large-scale infrastructure and development projects.
Meanwhile, the loan-to-deposit ratio climbed to 106.1 percent, up from 104.7 percent in the previous quarter, marking its highest level in recent times as credit expansion outpaced deposit growth.
Deposits rebounded by 4 percent after a decline in the prior quarter, supported by an 8.1 percent increase in time deposits.
The report also noted a 3.2 percent rise in operating income quarter on quarter, buoyed by a 9.6 percent surge in non-interest revenue from trade finance, foreign exchange, and investment gains.
Sam Gidoomal, managing director and head of Middle East Financial Services at A&M, commented: “Saudi banks are entering a new strategic phase marked by stronger capital stewardship and a focus on unlocking liquidity through innovation — from potential mortgage securitization to targeted portfolio rebalancing.”
“This financial agility, combined with solid credit growth and cost control, positions the sector to actively support Vision 2030 priorities and channel capital toward infrastructure and giga-projects,” he added.
Cost discipline was evident across the sector, as operating expenses fell by 1.7 percent, contributing to a 149 basis point improvement in the cost-to-income ratio to 29.8 percent.
Aggregate net income increased 6.3 percent to SR22.2 billion ($5.9 billion), while return on equity strengthened by 44 basis points to 15.3 percent and return on assets edged up to 2.1 percent.
The strong quarterly performance detailed in A&M’s KSA Banking Pulse coincides with a broader surge in credit expansion across the sector.
According to data from the Saudi Central Bank, the Kingdom’s bank outstanding loan portfolio rose to SR3.13 trillion at the end of April, reflecting a 16.51 percent increase over the past year and marking the fastest annual growth rate since mid-2021.
The data shows that approximately SR443 billion in new credit was issued over the past 12 months, highlighting how the Kingdom’s project-driven growth model is reshaping bank balance sheets. Real estate developers remain the largest borrowers, accounting for 21.77 percent of total corporate credit.
The analysis further underscored that impairment charges declined by 15.8 percent, alleviating margin pressures associated with interest rate normalization.
Non-interest income rose to 23 percent of total operating income in the first quarter, signaling progress in revenue diversification.
The cost of risk improved to 0.27 percent, down from 0.34 percent in the prior quarter, while the capital adequacy ratio remained robust at 19.3 percent.
Yield on credit moderated to 8 percent in the first quarter, down from 8.4 percent in the prior period, while the cost of funds declined to 3.3 percent.
The net interest margin edged slightly lower to 2.87 percent from 2.94 percent, reflecting ongoing margin pressures amid interest rate normalization.
The coverage ratio decreased to 154.8 percent, and operating income relative to total assets remained stable at 3.6 percent. Return on risk-weighted assets was unchanged at 2.7 percent quarter on quarter.
Asad Ahmed, A&M managing director, Financial Services, added: “The uptick in lending and deposit mobilization reflects improving business confidence and a rebalancing of liquidity across the sector.”
“While margin pressures persist amid interest rate normalization, the decline in impairments and growth in fee-based income indicate that banks are diversifying their revenue streams and adapting effectively to the evolving environment,” he added.
Saudi Ministry of Energy, UN ink deal to propel regional emissions cooperation
- Deal seeks to support MENA nations promote clean energy technologies
RIYADH: Middle East and North Africa countries are set to benefit from enhanced clean energy cooperation following an agreement between Saudi Arabia and the UN Environment Programme to accelerate emissions reduction.
The memorandum of understanding, signed in Riyadh by Energy Minister Prince Abdulaziz bin Salman and UNEP Executive Director Inger Andersen, seeks to support MENA nations through the promotion of clean energy technologies, development of climate policy frameworks, and knowledge exchange to advance sustainable development, according to an official release.
The initiative aligns with Saudi Arabia’s Middle East Green Initiative, a regional platform launched to combat climate change and reduce emissions by over 60 percent from hydrocarbon production across participating countries. The initiative aims to cut 670 million tonnes of carbon dioxide, equivalent to 10 percent of global nationally determined contributions when first announced in 2021.
The ministry release stated: “The MoU reflects shared goals to enhance resource efficiency and lower carbon emissions through a comprehensive, balanced and sustainable approach.”
It added: “Areas of cooperation include policy research and recommendations, partnerships with international organizations, participation in climate and CCE-related events, exchange of knowledge and best practices, and the development of climate policy frameworks, supported by regional and global climate networking activities.”
During the meeting, the two sides also held talks over advancing the objectives of the UN Framework Convention on Climate Change and the Paris Agreement.
“The two sides also discussed Saudi Arabia’s climate initiatives, including the Saudi Green Initiative and the Middle East Green Initiative, as well as other efforts undertaken by the Kingdom to expand renewable energy and reduce emissions through the Circular Carbon Economy framework,” the release added.
The MoU supports wider regional efforts to unlock renewable potential. MENA currently contributes less than 8 percent of global emissions from power and heat generation and is aiming to grow its clean energy capacity from under 50 gigawatts in 2022 to 200 GW by 2030, according to a June 2024 report by the International Energy Agency.
The IEA report also highlighted that the region — led by Saudi Arabia, Egypt, and Algeria — is experiencing the fastest relative growth in renewable energy, scaling at 4.5 times its current base due to ambitious national targets.
The MENA region holds substantial hydrocarbon reserves alongside significant renewable energy potential, positioning it as a strategically important player in the global shift toward sustainable energy, according to the Natural Resource Governance Institute.
Governments across the region are adopting a dual-energy strategy — leveraging both fossil fuels and renewables — to reduce emissions while bolstering energy security.
Enhanced regional collaboration is critical to developing interconnected energy systems, boosting economic competitiveness, and securing reliable access to international energy markets.
