INTERVIEW: SABB Managing Director David Dew steering through historic transaction in Saudi banking

David Dew, Managing Director of SAAB. (Illustration by Luis Grañena)
Updated 21 October 2018
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INTERVIEW: SABB Managing Director David Dew steering through historic transaction in Saudi banking

DUBAI: David Dew has been working in banking in the Middle East and other emerging markets for 40 years, and you might think he has seen it all. But the merger between SABB and Alawwal in Saudi Arabia — which he is steering through to completion next year — is a career achievement for him.
“I think it’s a clear case of a win-win situation, and all our stakeholders will get benefit from it. It’s a genuinely exciting landmark transaction, and a significant transformation for the Kingdom,” he said.
It is a historic transaction, Dew explains. “It is the third biggest banking merger in the history of the region — the other two were in the UAE with significant government ownership — so SABB-Alawwal is also the biggest private banking merger for 20 years. It’s the first since the Capital Market Authority (CMA) was formed and the first since the new takeover rules came in.”
The merger will create the third biggest bank in the Kingdom by assets, loans and deposits, and — perhaps more significant in the current financial environment — forge a bank that is unashamedly international in its outlook. The transaction has its origins in the different imperatives of foreign banks operating in the Kingdom. Saudi Arabia has been identified as a global growth market by HSBC, which holds 40 percent of SABB — full name the Saudi British Bank.
Alawwal — the “first bank” in Arabic, reflecting its long heritage in the Kingdom — was dominated by a consortium of foreign banking interests, notably cash-strapped RBS (Royal Bank of Scotland) of Britain. RBS and its consortium partners — from Spain and Holland — wanted to reduce their overseas footprint. Getting out of Alawwal was a logical move from that perspective.

RBS and the Spanish bank Santander — which would each have about 4 percent of the enlarged company — have undertaken not to sell their shares for six months after completion.

The foreigners’ different strategic interests might have been the original spark for the merger, but Dew firmly believes it is in the best interests of the Saudi banking business, and bank customers. “Our first stakeholder is the Kingdom, and the merger is a great example of why and how Vision 2030 is actually working. It’s showing that Saudi Arabia is open for business. An important part of the Vision plan is the financial sector development program, and this merger shows it is working.
“The idea is to grow and develop capital markets, and this will help the Kingdom do that. It’s the kind of thing that just might not have happened even a few years ago.”
The next set of stakeholders he is working to satisfy is the regulatory establishment. The deal has been quite a long time in gestation, and much of that time has been taken up in getting it just right from a regulatory standpoint. “It’s taken a bit longer than you might have expected, but the regulators have been with us all the way — the CMA, the Saudi Arabian Monetary Authority, and the Ministry of Finance. All good things take time, and it is more important to do it right than to do it quick,” he said.
The next key group of stakeholders are the shareholders on both sides. In addition to HSBC and the RBS consortium, there are big investors in both banks in the shape of the Olayan conglomerate, and the government agency the General Organization for Social Insurance. Both have recused themselves from involvement in the merger negotiations. But both boards have recommended the merger terms.
“We’ve explained the business rationale and made a compelling case to them that the merger creates value. There will be a circular from both parties to all shareholders, we hope, by the end of the year.”
The next stakeholders on the list are the customers. “I know it’s a cliche that the customers are all important, but it’s true, and they will see real benefits,” Dew said.




(Illustration by Luis Grañena)


Comprising as much as 75 percent of the new bank’s business, the corporate sector will be crucial. “It will be the leading corporate bank by lending, and will offer other products, too, for example trade finance. It will also be the leading cash management business, and a significant foreign exchange provider.
“I think it will occupy a powerful corporate position and overall will be a bellwether for the underlying economy, so it will be followed closely by anybody interested in the Kingdom’s business,” Dew explained. With a market capitalization of about SR65 billion ($17.33 billion) and a sizeable free float on the Tadawul, it will be valuable proxy for investment in the modernizing Kingdom.
The new bank will also use its connection with HSBC’s powerful investment banking operation in Saudi Arabia to help satisfy customers’ needs in that segment.
In the retail sector, it will never be as big as NCB or Al Rajhi, market leaders with more than 50 percent of the retail market between them. But with about 10 percent of the Kingdom’s retail market, Dew feels it will be approaching the “tipping point” at which it becomes a serious player.
“The home loans market is critical. We estimate we’ll have 16 percent of that market, which is vitally important to the changes that are happening in the Kingdom,” he said. It will also have around 20 percent of the Saudi credit card market, he estimated.
“We will redouble our efforts to offer a good SME (small and medium-sized enterprises) proposition. SABB has not done enough in this sector, but we will do more, and the ability to do it will be enhanced by the merger,” he added.
“For corporate customers, we will be able to offer the biggest balance sheet and underwriting capability, which adds up to more ‘muscle’ for corporate clients. For retail customers, we will offer additional scale and focus, especially on the digital side. This is the future for the retail banking business, and we will build on Alawwal’s strengths here. They are pretty good in digital already. They have punched above their weight,” Dew said.
The final group of stakeholders are the employees. “Again it is trite to say ‘We are nothing without our people,’ but I happen to believe it. We have promised and we mean it, that there will be no involuntary redundancies. That does not mean there will be no losses through attrition. People come and go all the time, so that is only natural,” Dew said.
The new bank will have 4,800 employees, more than 90 percent of them Saudi citizens and 20 percent women. Its new chairperson will be Lubna Olayan, head of the eponymous conglomerate and one of the leading business figures in the Kingdom. “She has a track record in business, leadership expertise and international connectivity. To have somebody like that as chair of the new bank is an incredibly powerful statement. She will also be the first female chair of a listed Saudi company,” said Dew, who will be managing director of the new entity.
The bank will start operating in what Dew sees as an improving economic and financial environment in the Kingdom, with the long-promised privatization and initial public offering program materializing. “Two years ago, growth and bank lending were falling. In 2018 there has been a modest but significant improvement, and I do believe next year is going to show further improvement.”
On the geopolitical background, always a big factor in the business climate in the region, he brings a historical perspective to bear.
“When I came here 40 years ago, Israel-Palestine was the big issue. Since then, the region has become even more complicated and volatile. But business has navigated through these problems and I’m confident it will do so again. It’s all about having strong foundations,” he said.


Tech, auto shares gain as Trump floats more tariff exemptions amid confusion

Updated 17 sec ago
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Tech, auto shares gain as Trump floats more tariff exemptions amid confusion

GDANSK/BENGALURU: Big Tech and auto shares rose after the US removed smartphones and other electronics from its tariffs on China over the weekend, and after President Donald Trump added new wrinkles into his vacillating trade policy on Monday by suggesting he might grant exemptions on auto-related levies already in place.

Trump’s aggressive tariffs, which would have raised the rate consumers and businesses would have to pay for imported goods by roughly 25 percent, sparked a selloff in US assets, including stocks, the dollar and Treasury bonds. The market rebounded on Monday, but the broad-market S&P 500 index is still down about 8 percent so far this year.

The shifting stances caused investors to question the safe-haven status that America has long enjoyed and sapped both business and consumer confidence. The shock response forced the White House to backtrack, but Trump over the weekend insisted more levies were in store.

Speaking on Monday at the White House, Trump said he was considering a modification to the 25 percent tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places. Those tariffs could raise the costs of a car by thousands of dollars, and Trump said car companies “need a little bit of time because they’re going to make ‘em here.”

US automakers developed a highly integrated supply chain that involves sending vehicles in various stages of completion across the borders several times after the passage of the North American Free Trade Agreement that was renegotiated during Trump’s first term. Shares of General Motors and Ford Motor closed 3.5 percent and 4.1 percent higher, respectively, on Monday.

“We share the President’s goal to increase American automotive production, and we appreciate the ongoing dialogue with the Administration. There is increasing awareness that broad tariffs on parts could undermine our shared goal of building a thriving and growing American auto industry, and that many of these supply chain transitions will take time,” said Matt Blunt, head of the American Automotive Policy Council representing Ford, GM and Stellantis, in a statement on Monday.

This weekend’s exemptions suggest the White House was becoming more aware of the pain that tariffs had in store for inflation-weary consumers, especially on popular products such as smartphones, laptops and other electronic devices. However, his promise of more tariffs on other key sectors like semiconductors as soon as next week leaves business in a state of flux. Monday afternoon, the White House said it had launched investigations into whether imports of pharmaceuticals and semiconductors threaten national security, which could be a precursor to slapping tariffs on those products.

“Not only is the scope of the tariff globally hard to grasp, but the uncertainty means businesses will have little confidence in their planning,” said economists at Morgan Stanley on Monday.

Trump and other administration officials, including Commerce Secretary Howard Lutnick, have said tariffs are necessary for boosting American manufacturing, and are critical to the White House's tax plans.

However, the tax on imports — which BlackRock estimated on Monday now comes to about 20 percent following the pullback on tariffs on tech imports — has undermined business and consumer confidence. Luxury goods maker LVMH reported a drop in US sales in the most recent quarter, while company executives said they may have “some capacity” to boost product — though its facilities in the US have faced notable problems.

“Prolonged uncertainty raises the risk of recession. It may drag on corporate investment and delay longer-term commitments,” BlackRock wrote, adding that the risk of a short-term accident had eased due to the pullback on tariffs.

Big Tech shares slumped in the past two weeks as tit-for-tat tariffs between Washington and Beijing stoked fears of higher costs, softer consumer demand and the worst supply-chain disruption since the COVID-19 pandemic. Apple rose 2.2 percent on Monday after a 9 percent drop in the past two weeks. Its flagship product, the iPhone — primarily made in China and imported into the US — was at risk of significant price hikes if substantial tariffs persisted, analysts warned.

Trump has maintained a hefty 145 percent tariff on China, including the 20 percent tariffs imposed in February related to fentanyl.

The exemptions cover 20 categories, including computers and laptops, as well as semiconductor devices, memory chips and flat panel displays. Analysts broadly said that the exemptions give companies more time to plan for where tariffs settle out.

“The removal of the worst-case scenario is an element of support (at least temporarily) for the sector,” analyst Alberto Gegra of Equita said.

Other consumer-facing companies including computer hardware makers HP and Dell Technologies rose 2.6 percent and 4 percent, respectively, while chip giant Nvidia edged lower. Nvidia on Monday said it would boost U.S. spending on facilities for AI development — which Trump attributed to the tariff threat.

European and Asian chip stocks also advanced, including major Asian suppliers to companies such as Apple. Foxconn, the largest iPhone assembler, gained 3%, contract laptop maker Quanta rose 5.8 percent and Inventec, which makes AI servers, rose 4.1 percent.


Oil Updates — crude edges up on potential US tariff exemptions on cars 

Updated 15 April 2025
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Oil Updates — crude edges up on potential US tariff exemptions on cars 

SINGAPORE: Oil prices inched higher on Tuesday, supported by new tariff exemptions floated by US President Donald Trump and a rebound in China crude oil imports in anticipation of tighter Iranian supply, according to Reuters. 

Brent crude futures gained 25 cents, or 0.4 percent, to $65.13 per barrel by 9:30 am Saudi time, while US West Texas Intermediate crude was up 28 cents, or 0.5 percent, to $61.81. 

“Trump granted exemptions on electronic tariffs and signalled an auto tariff relief, both of which are seen as setbacks from the previously announced import levies, hence, providing some relief to risk assets, including oil,” said independent market analyst Tina Teng. 

“However, the rally in stocks and growth-sentiment commodities is sceptical, as his policy is unpredictable.” 

In the latest development in Trump’s whipsawing trade war, he said he was considering a modification to the 25 percent tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places. 

The vacillating US trade policies have created uncertainty for global oil markets and pushed OPEC on Monday to lower its demand outlook for the first time since December. 

The Trump administration had announced on Friday that it would grant exclusions from tariffs on smartphones, computers and some other electronic goods, most of which are imported from China. That drove both oil benchmarks to settle up slightly higher on Monday. 

On Sunday, Trump said he would announce the tariff rate on imported semiconductors over the next week and a Monday Federal Register filing showed the administration had begun an investigation into imports of semiconductors on April 1. 

“The market is digesting fast-moving policy developments on the tariff front, while balancing them with nuclear talks between the US and Iran,” said ING analysts in a Tuesday note. 

“Clearly, the market is more focused on tariffs and what they mean for oil demand.” 

US Energy Secretary Chris Wright said on Friday the US could stop Iranian oil exports as part of Trump’s plan to pressure Tehran over its nuclear program. 

Also supporting prices were data on Monday showing that China’s crude oil imports in March were up nearly 5 percent from a year earlier, as arrivals of Iranian oil surged in anticipation of tighter US sanctions enforcement. 

Kazakhstan said on Monday that its oil output fell 3 percent in the first two weeks of April from the March average, confirming a Reuters report, although that still leaves its production above its OPEC+ quota. 


Al-Qasabi calls for Saudi-UK partnership to future-proof skills, jobs

Updated 14 April 2025
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Al-Qasabi calls for Saudi-UK partnership to future-proof skills, jobs

RIYADH: A Saudi-UK Center of Excellence should be established to help secure the future skill sets needed, according to the Kingdom’s minister of commerce.

During a panel discussion titled “Human Capital Reimagined – Launching the Saudi-UK Skills Initiative” on the second day of the Human Capability Initiative 2025 taking place in Riyadh, Majid Al-Qasabi explained that this initiative aligns with the UK’s reputation as a global center of excellence in education, home to top universities, leading research institutions, and world-class vocational schools.

Al-Qasabi speculated on future areas of collaboration: “We need to collaborate and cooperate and coordinate in three areas. Track A, we create a Saudi-UK Center of Excellence for future skills, where we can bring democrats like me, policymakers, private sector opinion leaders, educators, all the stakeholders to co-design future skills.”

He also shed light on additional areas where the two countries should collaborate, including vocational training and leveraging digital platforms.

“We know that the UK, they’re the center of excellence for vocational training, and we desperately need vocational training in Saudi Arabia. So, second track, we create the center of excellence or vocational academies, jointly UK-Saudi Vocational Academy, where your software, your brain power, your experience can be transferred to our boys and girls because this will also be used in the health sector and the newly developed sectors,” the minister said.

“Last, how can we leverage digital platforms to accelerate learning and continuous life learning because things are going too fast, so we create maybe a joined platforms to have continuous education even in the service sector. You know, the UK is the second largest exporter of services globally,” Al-Qasabi added.

He went on to note that the tourism, culture, sports, and creative industries are expected to create 1 million jobs by 2030. The creative economy alone already supports over 80,000 jobs, with strong growth anticipated in film and design, fashion, and digital arts.

“The digital economy is projected to grow from 4.4 percent of GDP in 2020 to over 19 percent by 2030. The health care sector is projected to reach SR250 billion ($66.6 billion) by 2030,” the minister said.

Al-Qasabi added: “The green economy expected over SR2 trillion worth of investments in the pipeline, like sustainable construction, renewable energy, circular economies, and so forth.”

He also emphasized that with 65 percent of the population under the age of 35, investing in lifelong learning is not a choice but a necessity.

Also speaking during the panel, the Kingdom’s Vice Minister of Sport, Bader Al-Kadi, noted that the National Sports Strategy was developed by drawing on insights from other markets, particularly the UK, which has been closely studied as a model for sports development.

“With that learning taken, we have worked on building capabilities in Saudis to ensure that we have the right talents. Not only as athletes, but as a physiotherapist, as psychiatrists, as sports managers, as coaches, and everything around building the ecosystem,” Al-Kadi said.

“We learn also from the UK sustainability in the sports sector. The UK sports sector is 90 percent funded by the private sector. That’s a great target, an ambitious to achieve. In Saudi Arabia today, 15 percent of the sports sector is funded by the private sector, so a big gap and a big ambition for us to work on toward achieving,” he added.

The minister also emphasized that human capability is one of the key enablers underpinning the National Sports Strategy and plays a central role in its development.

“The sports sector will contribute to 13 percent of those jobs that are being created by sports entertainment and tourism sectors,” Al-Kadi said.

“Obviously, sports (sector) is expected to also contribute to the economy. We aim to have sports reaching up to 3 percent of GDP by 2030. This is an ambitious target that we have for ourselves,” he added.

Also present in the same panel, UK’s Minister of Early Education Stephen Morgan underlined that the country wants to start by sharing their work with the Kingdom and, in turn, learn from the Ministry of Education’s initiatives to upskill and retain early-year staff.

“We could also share our experiences of introducing new modern teaching methods, and these include educational technology that tailors learning to individual children and produces data-led results to measure impact,” Morgan said.

He added: “And it’s through the sharing of our practice and resources and knowledge that early education can become a key building block in our partnership on skills training for older students and I have absolutely no doubt that the UK-Saudi Skills Education Partnership will be accessed with a success and we’ve already had notable achievements in our work together on education, such as increasing the number of UK independent schools in the Kingdom and we’re working really hard to deliver more important higher education partnerships for the future.”

Steve Field, UK special healthcare representative to Saudi Arabia, said: “You have a large number of nurses, majority of which are currently working very effectively in the hospital setup. You’ve got some brilliant hospitals, but to deliver the vision you will need to focus on prevention, on primary care and on mental health in addition to your hospital world and of course, if you can do that, you can move care out of hospitals, reduce the cost of healthcare, and also prevent illnesses before you have to treat them.”

He added: “So we’re here to help you. Our universities are really keen to partner with you to develop more nursing schools to support you in your faculty development, in your leadership, and we want to be on this journey with you and finally just to reassure and assure you that the UK government are right behind this and are with you right till the end and beyond.”

Mazen Fakeeh, president of Fakeeh Care Group, who also participated in the session, disclosed that the nursing shortage is a global issue, not just specific to Saudi Arabia.

“Nurses constitute 40 percent of the workforce required to provide care across the globe. Saudi Arabia, we have about. 6.2 nurses per 1,000 population. In Saudi Arabia, the current intake in nursing school is about 5,000 a year. For us to meet the gap, the existing gap and the future gap between 2030 to 2040, we need to increase that intake from the current 5,000 by 150 percent,” Fakeeh said.

He added: “So, there is a huge demand on nursing, nursing training and education. For that, the government had the initiative to reduce the number of years without compromising the quality of training from the current four years plus one year of internship to three years, which is the expedited nursing curriculum in the UK.”


London Business School to open Riyadh office amid rising demand for executive education

Updated 15 April 2025
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London Business School to open Riyadh office amid rising demand for executive education

RIYADH: London Business School is set to open an office in Riyadh in the coming months, a move its dean says reflects the institution’s long-term commitment to supporting Saudi Arabia’s Vision 2030 and the country’s accelerating demand for executive education.  

The new location will deliver tailored executive education programs for both public and private sector organizations, building on London Business School’s expanding presence in the Kingdom. 

“Opening a third location is a big move for us, and we are making this investment because we strongly believe in the future of Vision 2030,” said Sergei Guriev, dean of London Business School, in an interview with Arab News on the sidelines of the Human Capability Initiative in Riyadh. 

“We want to be part of this transformation, and we want to help enhance human capability of Saudi public and private sector organizations through providing leadership and business skills,” he added. 

The expansion will mark the school’s third global location and its second in the Middle East after Dubai. It will be managed by Florin Vasvari, appointed executive dean of executive education, Middle East, and Helen Kerkentzes, associate dean of executive education, who will serve as general manager. 

“We’ve grown our relationships with Saudi public and private sector organizations a lot. We have many Saudi students coming to our campuses in London and Dubai, but we also teach programs for Saudi corporations as well as, public sector organizations in London and in Riyadh,” Guriev said. 

He explained the school runs both open-enrollment and custom-designed programs to meet the needs of Saudi companies. 

“Open executive education programs are when students can apply from all sectors of Saudi economies,” he said. “But we also design custom customer-centric programs for Saudi corporations.” 

In recent years, the number of Saudi executives enrolling in open-enrollment Executive Education programs has surged by over 250 percent. 

Guriev noted that nearly one-third of LBS’s global executive education clients are either Saudi individuals or companies. 

“For us, Saudi Arabia is the biggest country for our executive education,” he said. 

The Kingdom has also become the top source of students at the school’s Dubai campus. 

“Saudi nationals are the biggest national group and account in the last intake, they account for about 40 percent of the student body in Dubai, in our executive MBA program in Dubai,” Guriev noted. 

He said the decision to open an office in Riyadh was part of a broader strategic move backed by the school’s leadership.  

“When I came on board as a dean, I talked to the board, the governing body of the London Business School. In November, we made the decision to proceed with opening an office,” he said. “In April, we stand on stage with three ministers, holding our commercial registration and investment license, allowing us to operate in Saudi Arabia.”  

On gender inclusion, Guriev praised the Kingdom’s progress and reaffirmed LBS’s commitment to advancing female leadership. 

“We drastically increase the participation of women in our programs in Saudi Arabia and in London. For us it’s very important and we praise the focus of the government on increasing of economic activity of women,” he said. 

“This is one of the great successes of recent years of the Kingdom of Saudi Arabia. And we want to be part of the success, providing more programs for women, not only in London but here on the ground in Riyadh, making it easier for female business leaders to take programs from London Business School,” Guriev added.  


Nigeria embraces AI in education to equip youth for global economy

Updated 14 April 2025
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Nigeria embraces AI in education to equip youth for global economy

RIYADH: Nigeria is integrating artificial intelligence into its education system as part of a broader strategy to train its vast youth population for the global tech economy, according to Minister of State for Education Maruf Tunji Alausa.  

Speaking to Arab News on the sidelines of the Human Capability Initiative in Riyadh, Alausa said African nations must embrace AI in education while ensuring that students retain critical social skills. 

“The basic outcome was that we don’t have a choice now, AI has come to stay. We need to now use AI as part of our learning,” Alausa said. “Countries need to infuse AI to help augment and improve education delivery.” 

However, he cautioned against over-reliance on technology, warning that it must not erode children’s social skills. “We have to be sure that it doesn’t leave deficiencies in the skill set, in the social skills of our children,” he added.   

With over 60 percent of Africa’s 1.2 billion people under 30 — and Nigeria’s 220 million population being 70 percent youth — Alausa argued that the continent is uniquely positioned to supply skilled labor to aging economies like Europe, Japan, and the US. 

“Today, Nigeria has 65 million people between 15 and 29, with 5 million entering the workforce yearly,” he said. “We need to train this youthful population in tech skills — software development, cybersecurity, AI, cloud computing — so they can service companies worldwide while staying in Nigeria.”  

Nigeria has launched a digital training academy to upskill university graduates in high-demand tech fields, enabling them to earn online certifications and work remotely for international firms. Alausa urged other African nations to adopt similar models.   

During his visit to Saudi Arabia, Alausa toured several academic institutions alongside Education Minister Yousef Al-Benyan and praised the Kingdom’s dual-track approach to higher education. 

“Saudi Arabia has gotten it right,” he said. 

He also announced forthcoming collaborations between Nigeria and Saudi Arabia in education and skills development. 

“As we learn from Saudi Arabia, Saudi Arabia can also learn from us,” Alausa added.  

Held under the patronage of Crown Prince Mohammed bin Salman, the Human Capability Initiative convened more than 12,000 experts from over 100 countries to address the intersection of education, workforce transformation, and emerging technologies. 

This year’s theme, “Beyond Readiness,” focused on AI, inclusive development, and global equity in skills training.   

With Nigeria positioning itself as a hub for global tech talent, Alausa’s vision aligns with HCI’s goal of fostering cross-border partnerships to future-proof economies.