Massive shift in retail experience after COVID-19 outbreak: Majid Al Futtaim Properties CEO
Updated 24 May 2022
Arab News
RIYADH: The retail experience has witnessed a massive shift after the outbreak of the pandemic, Majid Al Futtaim Properties CEO Ahmed Ismail told a gathering at the World Economic Forum Annual Meeting in Davos on May 24.
He said that this massive shift has come as people were confined to their homes due to the pandemic. As things have improved, the CEO said that human beings have now that hunger for a social experience — something that has opened up new possibilities.
Talking about the retail sector, Ismail said that data has been a big challenge for their businesses as their new-age competitors are incredibly data-rich with the implementation of new technologies.
He revealed that Majid Al Futtaim Properties has invested a lot in recent years in data collection through loyalty programs and partnerships.
The company has also inked partnership deals with payment processors, telecom companies, and even with the Dubai government through the Dubai smart initiative to bridge this data divide.
Saudi commercial bank profits jump 16% in April, topping $2bn before zakat, tax
Year-to-date earnings reached SR32.97 billion, an annual rise of 20%
Banks getting balance sheets ready for next investment wave
Updated 10 min 45 sec ago
Dayan Abou Tine
RIYADH: Saudi Arabia’s banking sector extended its winning streak in April, posting SR7.77 billion ($2.07 billion) in pre-zakat and tax profits, a 16 percent increase compared to the same month last year.
According to the Saudi Central Bank, also known as SAMA, this brought year-to-date earnings to SR32.97 billion, an annual rise of 20 percent, keeping the Kingdom firmly on course for another record-breaking period.
The sustained momentum is attributed to a robust mix of state spending on giga-projects, resilient consumer demand, and still-elevated interest rates.
Financing volumes continue to climb, driven primarily by corporate borrowers across a growing range of industries, including manufacturing, utilities, insurance, and private education.
Speaking at the inaugural 24 Fintech conference in September, Finance Minister Mohammed Al-Jadaan said the Kingdom had licensed 224 fintech firms by the second quarter of 2024. File/SPA
Contractors are also racing to secure long-term credit for giga-projects such as NEOM, Diriyah, and the Jafurah gas field.
A wider Gulf picture
Strong as those local figures are, the broader region is also gaining momentum. A Kamco Invest report released in May showed that Gulf banks collectively earned a record $15.6 billion in the first quarter of 2025, an 8.6 percent increase from a year earlier.
Financial institutions in the UAE posted the largest absolute increase, adding $639.6 million, while Saudi lenders recorded the fastest annual growth at 17.2 percent.
Kamco added that fee income is rising, costs are under control, and loan-loss provisions fell sharply during the period, cushioning a small dip in net interest income.
Investor appetite is visible in market valuations. Forbes Middle East’s “30 Most Valuable Banks 2025” March list includes 10 Saudi lenders with a combined market cap of about $269 billion— roughly one-third of the entire ranking.
Al Rajhi Bank led the pack at $105.6 billion, with Saudi National Bank following at $54.7 billion.
Contractors are racing to secure long-term credit for giga-projects such as NEOM, Diriyah, and the Jafurah gas field. NEOM
Global Finance named Saudi Awwal Bank the Kingdom’s best lender in its May “World’s Best Banks in the Middle East 2025” release, highlighting its HSBC-backed mobile app upgrades, Visa Direct payments, and one-stop small and medium-sized enterprises lending platform.
Cleaning the books and raising cash
Banks are also getting balance sheets ready for the next investment wave.
Bloomberg reported in March that lenders are exploring sales of older non-performing loans to specialist investors to free up capital for upcoming mega project drawdowns.
They’re also tapping capital markets. By June, they had issued over $5.6 billion in Additional Tier-1 bonds, already a full-year record and the world’s second-largest AT1 issuance in 2025, according to Bloomberg.
The spree includes Al Rajhi Bank’s $1.25 billion deal in April, Banque Saudi Fransi’s $650 million perpetual at 6.375 percent in May, Saudi Awwal Bank’s $650 million inaugural issue, and Alinma Bank’s $500 million of sustainable sukuk, all heavily oversubscribed.
Saudi National Bank was ranked in the Forbes Middle East’s “30 Most Valuable Banks 2025” March list. Shutterstock
By tapping eager investors now, while margins remain healthy and global demand for Gulf paper is strong, lenders are bulking up capital buffers and keeping loan-to-deposit ratios in check. That leaves them better prepared to fund the fast-rising credit needs of projects like NEOM and Diriyah without tripping liquidity alarms later in the year.
Fintech role
Fintech is reshaping Saudi banking from the ground up. The Saudi Central Bank’s Open Banking Framework — most recently updated in September to cover payment-initiation services — sets common technical rules that let lenders and start-ups plug their systems together safely and at speed.
Speaking at the inaugural 24 Fintech conference in September, Finance Minister Mohammed Al-Jadaan revealed that the Kingdom had licensed 224 fintech firms by the second quarter of 2024, up from fewer than 100 just three years earlier.
One of the newest players is Riyadh-based Stitch, which closed a $10 million seed round on May 28. The company offers a single set of application-programming interfaces that lets banks, fintechs and even non-financial brands bolt on real-time payments and open-banking functions far faster than older systems.
Early adopters already include Lulu Exchange and point-of-sale platform Foodics. The founders say the fresh cash will go toward doubling the engineering team and expanding the product suite.
Saudi Arabia’s sustained momentum is attributed to a robust mix of state spending on giga-projects, resilient consumer demand, and still-elevated interest rates. File/AFP
Looking ahead
Riyad Capital’s first-quarter preview, released in April, expects another double-digit profit rise this year, about SR19 billion for the listed banks it tracks, as loan growth stays strong and rate cuts arrive slowly.
S&P Global, in its Saudi Arabia Banking Sector Outlook 2025 report, says a 10 percent increase in lending should outweigh a 20- to 30-basis-point dip in margins, keeping sector returns on assets near 2.1 percent to 2.2 percent.
Funding is the main watchpoint. Moody’s shifted its system outlook to stable on Feb. 25, saying strong credit growth is tightening liquidity, but capital buffers remain solid.
For now, asset-quality risks remain low. S&P expects non-performing loans to edge up to just 1.7 percent by the end of 2025, while loan-loss provisions are projected to stay around 50 to 60 basis points. Banks’ total capital ratios, hovering near 19 percent, provide a solid buffer to absorb potential shocks from falling oil prices or rising private-sector leverage.
Saudi lenders are still the region’s earnings workhorse. Profits are rising, market values are high, and fresh money — from bond buyers to venture capitalists — is flowing in. If they can keep gathering deposits quickly enough to fund a fast-growing loan book, the Kingdom’s banks look set to stay ahead of their Gulf neighbors in both profit and ambition well into next year.
Saudi carrier flynas to expand operations across 4 hubs, official says
Hubs include Riyadh, Jeddah, Madinah, and Dammam as part of growth plan
Carrier expanded its summer schedule, launching four new international destinations
Updated 58 min 57 sec ago
Reem Walid
RIYADH: Saudi Arabia’s low-cost carrier flynas is set to expand operations across its four main hubs — Riyadh, Jeddah, Madinah, and Dammam — as part of an ambitious growth plan, according to a top official.
In an interview with Al-Eqtisadiah, Waleed Ahmed, the company’s official spokesperson, said that flynas holds the largest aircraft order in the Kingdom and one of the biggest in the Middle East, with a total of 280 aircraft set to be received.
This follows a major deal signed in July with Airbus to acquire 160 new aircraft, including 30 wide-body A330neo and 130 single-aisle jets across A320neo, A321neo, and A321LR models.
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The airline has seen a sharp rise in passenger traffic, with volumes climbing from around 11 million in 2023 to more than 14.7 million in 2024, reflecting the low-cost carrier’s rapid expansion in line with Saudi Arabia’s push to position itself as a leading global hub for tourism and business.
“These numbers reinforce the company’s role in supporting Vision 2030, which aims to increase the number of passengers to 330 million and attract more than 150 million international passengers by that year.” Ahmed said, as quoted by Al-Eqtisadiah.
He also highlighted that, as part of its ambitious strategic plan, flynas has expanded its summer schedule by launching four new destinations for the first time: Krakow in Poland, Geneva in Switzerland, Milan in Italy, and Rize in Turkiye, in addition to its usual summer routes.
Last week, flynas finalized its initial public offering at SR80 ($21) per share — the top of its indicated price range — following strong demand from both institutional and retail investors.
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The pricing values the airline at an estimated market capitalization of SR13.6 billion at listing.
The offering followed the company’s announcement last month of its intention to float 30 percent of its share capital on the Saudi Exchange, making flynas the first airline in the Kingdom to go public and the first Gulf airline IPO in nearly two decades.
In line with its ongoing fleet expansion, flynas recently took delivery of its fourth Airbus A320neo of 2025, bringing the total number of A320neo aircraft in its all-Airbus fleet to 57. The current fleet includes 63 aircraft — 57 A320neo, four A320ceo, and two A330neo wide-body jets.
Al-Habtoor Group chairman to lead high-level delegation to Syria, exploring investment opportunities
Group said visit reflects its ongoing strategy to explore new cooperation with Syrian government
Khalaf Al-Habtoor to visit Syria in coming days
Updated 09 June 2025
Miguel Hadchity
RIYADH: The head of Dubai conglomerate Al-Habtoor Group is set to visit Syria with a delegation of senior executives to discuss potential investments and partnerships with the new government.
According to a statement, the visit reflects the group’s ongoing strategy to explore new avenues of cooperation with the Syrian government and to assess potential investment opportunities across multiple sectors.
It added that the trip stems from “a firm belief” in Syria’s ability to recover its strength and regional standing and the importance of public-private partnerships in the country’s rebuilding phase.
The move comes as Syria’s transitional government, led by President Ahmed Al-Sharaa, pushes economic reforms to attract foreign investment, including privatizations, relaxed trade policies, and major infrastructure deals.
Speaking ahead of the trip, the group’s Chairman Khalaf Ahmad Al-Habtoor said: “Syria is a country rich in culture, history, and capable people. We believe in its future potential and are eager to play a role in its revival through meaningful projects that generate employment.”
He added: “We look to Syria with great confidence. Its people possess the energy and resilience needed to shape a strong and prosperous future. As an Arab group with deep regional roots, we consider it both a moral and economic responsibility to stand as a partner in rebuilding stable and thriving societies.”
Al-Habtoor Group, a UAE-based multinational with a strong presence in the hospitality, real estate, and automotive industries, has a history of large-scale investments in the Middle East. The move follows the organization’s recent withdrawal from Lebanon, where it cited instability as a barrier to business.
Jordan’s foreign exchange reserves hold steady at $22.76bn in May
Gold holdings at the end of May were valued at $7.76 billion
Qatar Central Bank recorded a 3.6% increase in its foreign currency reserves and liquidity
Updated 09 June 2025
Reem Walid
RIYADH: Jordan’s foreign exchange reserves remained largely unchanged in May, standing at $22.76 billion, as per new data released by the Central Bank of Jordan.
The slight month-on-month dip — about 0.2 percent from April — reflects broad stability in the Kingdom’s external buffers.
Jordan’s foreign exchange figures are broadly in line with trends observed across other Middle East and North African countries.
The Qatar Central Bank recorded a 3.6 percent increase in its foreign currency reserves and liquidity, reaching 258.135 billion Qatari riyals ($70.9 billion) in May, up from 249.165 billion riyals in May 2024.
Jordan’s long-term foreign-currency issuer default rating was affirmed at “BB-” with a stable outlook by Fitch Ratings. File/AFP
Egypt’s foreign exchange reserves rose to $48.525 billion by the end of May, compared to $48.144 billion in April, marking an increase of $381 million.
“The Central Bank of Jordan stated in a statement today that its total foreign reserves are sufficient to cover the country’s imports of goods and services for approximately nine months,” the Qatar News Agency reported.
The central bank also reported that gold holdings at the end of May were valued at $7.76 billion, totaling 2.345 million ounces, underscoring the role of bullion in Jordan’s reserve composition.
“It added that the presence of comfortable levels of foreign reserves enhances the ability to influence exchange rates, provides a stable economic environment, and enhances the confidence of foreign creditors and investors,” the QNA report stated, citing the Jordan Central Bank.
The Central Bank of Jordan said its total foreign reserves are sufficient to cover the country’s imports of goods and services for approximately nine months. File/AFP
In May, Jordan’s long-term foreign-currency issuer default rating was affirmed at “BB-” with a stable outlook by Fitch Ratings, citing the country’s macroeconomic stability and progress on fiscal and economic reforms.
The US-based credit rating agency noted that the rating and stable outlook also reflect Jordan’s resilient financing sources — including a liquid banking sector, a robust public pension fund, and sustained international support.
Despite the stable outlook, Jordan’s credit rating remains below that of several other countries in the region. In February, Fitch affirmed Saudi Arabia’s IDR at “A+” with a stable outlook, while the UAE was rated “AA-.”
Fitch said the ratings are constrained by high government debt, moderate growth, risks from domestic and regional politics, as well as current account deficits and net external debt levels that exceed those of rating peers.
Jordan’s foreign exchange figures are broadly in line with trends observed across other Middle East and North African countries. Central Bank of Jordan
A “BB” rating indicates elevated vulnerability to default risk, particularly in the event of adverse shifts in business or economic conditions. However, it also suggests some degree of financial or operational flexibility in meeting commitments.
Fitch also noted that Jordan’s government remains committed to advancing its three-pillar reform agenda — spanning economic, public administration, and political sectors — despite external pressures.
The agency added that the pace of reforms will continue to be shaped by the need to preserve social stability, resistance from vested interests, and institutional capacity limitations.
Syria’s central bank plans currency unification and return to global payment system SWIFT
Governor Abdulkader Husrieh said reforms aim to eliminate role of unauthorized money changers
Reintegration into SWIFT marks milestone in new government’s economic liberalization efforts
Updated 09 June 2025
Miguel Hadchity
RIYADH: Syria will adopt a unified exchange rate before transitioning to a managed float system as it seeks to stabilize a currency that has lost nearly all its value against the US dollar.
In an interview with the Financial Times, Central Bank of Syria’s Governor Abdulkader Husrieh confirmed the reforms, emphasizing efforts to eliminate the role of unauthorized money changers in the country’s foreign exchange market as part of broader financial reconstruction.
Syria is also set to be fully reintegrated into the SWIFT international money transfer system within weeks, reconnecting the country to global finance after 14 years of war and sanctions.
The country is working to revive its economy after years of conflict, with its transitional government, led by President Ahmed Al-Sharaa, implementing reforms such as privatizing state-owned firms, easing import restrictions, and attracting foreign investment.
An armed member of Syria’s security forces stands guard outside the Damascus Securities Exchange as the stock market opens in the Ya’fur area near Damascus. AFP
“We aim to enhance the brand of the country as a financial hub given the expected foreign direct investment in rebuilding and infrastructure — this is crucial,” Husrieh told the FT.
Key developments in Syria include a $7 billion energy deal with Qatar, the reopening of the Damascus Securities Exchange, and a $300 million fiber-optic project with Gulf telecom companies. These initiatives come as Saudi Arabia and Qatar pledge financial support to help stabilize Syria’s economy amid a gradual easing of Western sanctions.
SWIFT reconnection to boost trade and investment
The reintegration into SWIFT marks a milestone in the new government’s economic liberalization efforts following the lifting of US sanctions last month.
The Society for Worldwide Interbank Financial Telecommunications is a global cooperative that facilitates secure international money and security transfers through a vast messaging network, enabling banks and financial institutions to exchange information and instructions for financial transactions.
Husrieh, who took office in April, said that significant progress has been made but acknowledged that there’s still much work ahead.
A money changer waits for customers on a street in Damascus. AFP
Post-war economic challenges
Since 2011, Syria has been isolated from global markets due to war and sanctions. The economy collapsed under ex-President Bashar Assad and when Al-Sharaa took power last December, his government swiftly introduced free-market reforms to revive the economy and reassure wary foreign investors.
Last month, President Donald Trump’s announcement of lifting sanctions provided a major boost, but Husrieh stressed that “a full policy shift is still needed,” calling for comprehensive sanctions removal rather than selective measures.
“The central bank previously micromanaged the financial system, overregulated lending, and restricted withdrawals,” he said. “We’re reforming through recapitalization, deregulation, and re-establishing banks as intermediaries between households and businesses.”
Reconnecting to SWIFT will reduce import costs, facilitate exports, and curb reliance on informal financial networks. Husrieh said all foreign trade will now go through formal banks, cutting out money changers who took a 40 percent cut on dollar transactions.
Before Assad left the presidency, the Syrian pound plummeted. While it has since strengthened, volatility remains. Husrieh aims to unify official and black-market rates before transitioning to a managed floating exchange rate system.
Gulf nations are actively supporting the reforms in Syria, and Saudi Arabia and Qatar cleared the country’s World Bank debt and pledged to cover public sector salaries for three months.
“Effective May 12, 2025, the arrears of approximately $15.5 million due to the International Development Association by the Syrian Arab Republic have been cleared,” the World Bank confirmed on May 16.
