بيوتر شولكس

في عام 2017، أنشأ صندوق الاستثمارات العامة السعودي وعدد من البنوك الأردنية صندوق الاستثمار السعودي الأردني لتوجيه 3 مليارات دولار إلى الاقتصاد الأردني. ويقدم مشروعان من مشاريع صندوق الاستثمار السعودي الأردني دراسات حالة ذات صلة بالتحديات التي تواجه الجهود الأردنية الأوسع نطاقاً لجذب المزيد من الاستثمار الأجنبي المباشر ودفع عجلة التنمية الاقتصادية.

The last few years have seen a lot of consolidation in Gulf financial sectors. Not only do these mergers create economic benefits, the merged entities also become potent tools for economic development. The mega-funds and other major financial institutions are part of a trend where Gulf political elites sidestep ossified bureaucracies and instead centralize power in private entities over which they have even more control.

This policy brief provides a deep dive into the far-reaching and interrelated policies imposed by the government to reduce the country’s deficits, debts, and reliance on hydrocarbons.

Saudi Arabia’s leviathan sovereign wealth fund, the Public Investment Fund (PIF), has recently sold a 5% stake in the Saudi Telecom Company (STC). The firm is the largest and most profitable in the regional telecoms sector. The 3.2B USD sale, completed in early Dec. 2021, is yet another step in Riyadh’s privatization drive as part of its Vision 2030 agenda, and highlights the growing role of the Kingdom’s domestic financial sector.

Vision 2030 promises a transformation of Saudi Arabia’s economy, and the financial sector will be crucial to achieving this. The sector will facilitate private investment focusing on small and medium-sized enterprise (SME) financing, fund mega-projects, and be a driver for diversifying away from oil. As a result, banks’ role must go from being distributive and largely passive to developmental and active. This article will highlight how the role of the Saudi banking sector has been transformed in the last five years and how its composition is changing to cope.

While Western banks saw their valuations drop substantially during the first 18 months of the COVID pandemic — and have yet to recover — the declines among Saudi banks have been smaller and their valuations are now closer to, if not above, their pre-pandemic levels. Identifying the drivers of this seemingly contradictory trend helps us better understand the shifts within the Saudi banking sector and the growing impacts of policies related to Vision 2030, the country’s long-term economic development and diversification program.