Saudi Press

Saudi Arabia and the world
Thursday, Mar 28, 2024

Standard Chartered says Saudi Arabia has opportunities for growth

Standard Chartered says Saudi Arabia has opportunities for growth

Saudi Arabia is an important market that is “growing and promising” and opens up large-scale banking opportunities for the region and the world, a banking official said on Wednesday.
“The Saudi-UK business, trade and investment partnership is very strong and historic,” Mazen Fahad Al-Bunyan, CEO of Standard Chartered Saudi Arabia, told Arab News on the sidelines of a UK roadshow that coincided with the launch of the British-based multinational bank’s Q1 results on Wednesday. “The trade corridor is very strong. It has recorded SR15.3 billion last year and that was a 47-percent growth that excludes foreign direct investment, which was SR5.1 billion, give or take, which is significant and important for the two countries, and we’d like to play a role in that as well.”

Standard Chartered has been operating in the Kingdom since 2011 through its capital markets license, and has already set up similar licenses in the UAE and is looking to do the same in Egypt by the end of the year. It is already present in 18 markets in the Middle East and North Africa region and Al-Bunyan says the company has a “very clear strategy” for the region.

“We’re not foreign to the market,” he said. “In fact, it’s a very important market for us. We continue to invest in localizing our coverage and bringing teams on the ground, bringing capabilities on the ground, investing in digital systems and bringing our best-in-class expertise, whether it’s people or innovative products,” he added.

The consumer, corporate and institutional banking, and treasury services company reported a very strong first quarter in which profits jumped 21 percent, beating expectations, as rising interest rates buoyed income from its cash management and retail banking businesses.

Profits in Africa and the Middle East increased by 9 percent but were up 31 percent on a constant currency basis, as income increased 26 percent with strong growth in cash management and retail deposit income, the report said.

“This was partly offset by expenses increasing 14 percent on a constant currency basis reflecting inflationary pressures in the region. Impairment charges were a net release of $26 million, an $18 million reduction on the prior year,” it added.

“We have achieved by far the highest quarterly results since 2014 for the bank as a whole, we remain very liquid and our asset quality is diversified and we are on track to achieve our 2024 targets,” Al-Bunyan said.

“Our 2024 target is to achieve a return on tangible equity of 14 percent, but looping it into Saudi, we are looking to further enhance our business and operation in the Kingdom, bringing our capabilities on the ground to tie in with our global clients and local clients as well, and to help work on achieving and supporting delivery of Saudi Vision 2030.”

He added that even during crises including the COVID-19 pandemic, the company still continued to perform well and claimed that the bank does not face any challenges, “only more opportunities.”

He continued: “Other things that Standard Chartered is doing in Saudi include developing local talent, engaging with key stakeholders within the country, and we have also launched a ‘Women in Tech’ program that is focused on supporting (female digital entrepreneurs). This is a very rich program, and it’s been very rewarding as well.”

Female participation in the Saudi labor market is at its highest ever, at 37 percent of the market, he added.

He also highlighted some youth initiatives — important since 70 percent of the Saudi population is below the age of 30. “Our talent mix on the ground is very youthful,” he said.

Standard Chartered has a global community initiative called Future Makers that is focused on youth. The company has already introduced the program — which focuses on education, employability and entrepreneurship — into Saudi Arabia, the UAE and Bahrain, and is looking to set it up in Egypt as well, Al-Bunyan said.

“It provides (youth) with the required skills (to enter) employment and function in the future,” he added.

Standard Chartered is also committed to delivering on the Saudi Green Initiative and the Middle East Green Initiative that were launched by Saudi Crown Prince Mohammed bin Salman in 2021, Al-Bunyan said.

“The initiative was very comprehensive and it could be a blueprint for other regions to adopt. As a region, they have shown they are serious about delivering on these targets,” he added.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×