Oil wealth offers new opportunity

摘要

With international banks set to enter Saudi Arabia's previously guarded markets, as the long-awaited capital market law comes into effect, the threat of increased competition is looming on the horizon for the country's banks. At the same time, one of Saudi banks' main sources of income — the issuance of government paper - is slowly drying up. Despite this, Saudi institutions can look forward to a bright future of growing lending opportunities and robust profitability. The deterioration in the kingdom's internal security situation has had little immediate impact on the 10 Saudi-owned banks. On the contrary, as consumers embark on an oil-driven spending spree, the local market is as buoyant as it has been for many years.