Forbes Middle East recently unveiled its annual ranking of the Middle East’s most valuable banks, shedding light on the resilient and customer-centric financial institutions shaping the region’s economy. This prestigious list showcases the leading banking titans based on their market value, reflecting their performance and impact as of February 23, 2024.
The ranking, compiled by Forbes Middle East, draws data from stock exchanges across the Arab world, focusing on Middle Eastern banks and excluding listed subsidiaries of other companies. The 30 banks featured in the list collectively amassed a staggering market value of $581.1 billion, marking a noteworthy 14% increase over the past year.
Regional Dominance and Market Insights:
Gulf Cooperation Council (GCC) entities emerged as dominant players in this year’s ranking, with 26 out of the 30 banks hailing from the GCC region. Saudi Arabia, in particular, made a significant imprint, contributing a third of the listed banks with 10 entries boasting an aggregate market value of $279.5 billion. The United Arab Emirates (UAE) closely followed with seven entries valued at $128.7 billion, while Qatar secured six entries with a combined worth of $73.6 billion.
Leadership and Top Performers:
Topping the 2024 list is Saudi-based Al Rajhi Bank, showcasing exceptional growth with a market value surge of $21.7 billion over the last year, reaching an impressive $96.6 billion. Notably, Al Rajhi Bank reported total assets valued at $215.5 billion as of December 2023, accompanied by a robust net profit of $4.4 billion.
Following closely behind are Saudi National Bank and First Abu Dhabi Bank, securing the second and third positions respectively with market values of $68.2 billion and $41.5 billion. Collectively, these three banking giants accounted for over 35% of the total market value of the 30 banks listed, reflecting their significant influence and market dominance.
Key Insights and Implications:
While the top three banks command substantial market value, it’s noteworthy that the cumulative worth of the region’s top three banks falls short of the collective value of the 10 Saudi banks listed, which stands at a remarkable $279.5 billion. This underscores the robustness and depth of Saudi Arabia’s banking sector, indicating its pivotal role in the region’s financial landscape.
For investors, policymakers, and industry stakeholders, Forbes Middle East’s ’30 Most Valuable Banks’ ranking provides valuable insights into the Middle East’s banking sector, highlighting key players, trends, and growth opportunities shaping the region’s economic trajectory. As the banking industry continues to evolve amidst global dynamics, these insights serve as a compass for navigating the complex financial landscape of the Middle East.