You are hereHome
Saudi banks exposure to Saad, Algosaibi estimated at US$5 billion
Source: BI-ME and Bloomberg , Author: BI-ME staff
Posted: Wed August 26, 2009 5:02 pm

SAUDi ARABIA.  Saudi banks have a combined exposure of around US$5 billion to the two troubles Saudi family conglomerates, Saad Group and Ahmad Hamad Algosaibi & Bros. (AHAB), according to a Standard Chartered report.

“We estimate that Saudi banks have approximately US$5billion of combined gross exposure to the Saad and Al-Gosaibi groups,” Singapore-based credit analyst Victor Lohle said in a report.

“Although significant, the exposure must be put into the context of a system with equity of about $50 billion,” Lohle wrote in the report today.

“We expect most of the banks’ financial profiles to remain sound,” he added.

Standard Chartered initiated coverage of the Saudi banking system with a “stable outlook” and said that Saudi banks currently trade rich, both in cash and CDS, compared with other banks in the Gulf region.

Court cases are also taking place between the two groups after the Algosaibi group claimed in a 22 May  New York filing that Maan al-Sanea, the owner of Saad Group, used ‘falsified documents’ to obtain US$10 billion.

Units of the two Saudi family groups have borrowed at least US$15.7 billion from more than 80 regional and international banks, including Paris-based BNP Paribas New York-based Citigroup and Arab Bank in Jordan, according to documents provided by lenders.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: April 16, 2014
INTERNATIONAL. The WGC pointed out that the Chinese bank savings amount to US$7.5 trillion but only about US$300 billionn is allocated to gold, signifying the potential for gold demand to grow as Chinese wealth climbs.
date:Posted: April 16, 2014
UAE. "A similar drop to 2013 is unlikely. Those who wanted to get out of gold did, and the rest of 2014 will probably be a year of sideways trading."
date:Posted: April 16, 2014
UAE. Apartments sector witnessed increase of 29% whilst villa rentals have grown by 15% year on year; Over the next four years roughly 65,000 new residential units penned for completion.
dhgate