Riyadh. Fitch Ratings revised outlook of six Saudi Arabian lenders to 'stable' from 'negative' as the Arab world’s largest economy recovers from the coronavirus pandemic. Reuters
Riyadh. Fitch Ratings revised outlook of six Saudi Arabian lenders to 'stable' from 'negative' as the Arab world’s largest economy recovers from the coronavirus pandemic. Reuters
Riyadh. Fitch Ratings revised outlook of six Saudi Arabian lenders to 'stable' from 'negative' as the Arab world’s largest economy recovers from the coronavirus pandemic. Reuters
Riyadh. Fitch Ratings revised outlook of six Saudi Arabian lenders to 'stable' from 'negative' as the Arab world’s largest economy recovers from the coronavirus pandemic. Reuters

Fitch affirms ratings of six Saudi banks and revises their outlook to 'stable'


Fareed Rahman
  • English
  • Arabic

Fitch Ratings affirmed investment grade ratings of six lenders in Saudi Arabia and revised their outlook to “stable” from “negative” as the Arab world’s largest economy recovers from the coronavirus pandemic.

The ratings agency’s revision is based on authorities’ strong ability to support the kingdom’s banking system, given the large external reserves, Fitch said on Monday.

The six banks whose credit ratings were affirmed at "BBB+" are Arab National Bank, Banque Saudi Fransi, Alinma bank, Saudi Investment Bank, Bank Aljazira and Gulf International Bank-Saudi Arabia.

The revision also reflects a “long record of support for Saudi banks, irrespective of their size, franchise, funding structure and level of government ownership”, the ratings agency said.

Earlier this month, Fitch revised Saudi Arabia’s outlook to “stable” from “negative” and affirmed "A" sovereign rating on the back of higher oil prices and the government’s continued commitment to fiscal reforms.

Saudi Arabia’s economy is forecast to grow by 2.4 per cent this year and 4.8 per cent in 2022, driven by a strong rebound in the kingdom's non-oil sector and investment from its sovereign wealth fund, the Public Investment Fund, according to the International Monetary Fund.

The kingdom's budget deficit is expected to narrow to 3.3 per cent of the gross domestic product in 2021, better than the 4.9 per cent target of the government budget, assuming oil prices average $63 a barrel this year, Fitch said this month.

The ratings agency also sees “high contagion risk among domestic banks” due to the interconnected and smaller size of the market.

“We believe this is an added incentive for the state to support any Saudi bank, if needed, to maintain market confidence and stability,” it said.

Saudi Arabia's real non-oil GDP growth is projected to average 3 per cent from 2021 to 2023, according to Fitch, while the IMF forecasts that the kingdom's non-oil economy will grow by 4.3 per cent this year.

Higher oil prices following Opec+ agreement and rising demand are expected to further support the economy. Brent, the international benchmark for two thirds of the world's oil, is currently trading above $74 a barrel.

The PIF is also investing in the country to boost its economic growth. In January, the Saudi fund unveiled a five-year strategy with the aim of doubling its assets to $1.07 trillion and investing a minimum of $40 billion a year into the domestic economy until 2025.

The investment is expected to create 1.8 million jobs and contribute $320bn to the kingdom's non-oil economy.

UAE currency: the story behind the money in your pockets
Greatest Royal Rumble match listing

50-man Royal Rumble - names entered so far include Braun Strowman, Daniel Bryan, Kurt Angle, Big Show, Kane, Chris Jericho, The New Day and Elias

Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match

WWE World Heavyweight ChampionshipAJ Styles (champion) v Shinsuke Nakamura

Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe

United States Championship Jeff Hardy (champion) v Jinder Mahal

SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos

Raw Tag Team Championship (currently vacant) Cesaro and Sheamus v Matt Hardy and Bray Wyatt

Casket match The Undertaker v Rusev

Singles match John Cena v Triple H

Cruiserweight Championship Cedric Alexander v Kalisto

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
While you're here
Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
City's slump

L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

The biog

Nickname: Mama Nadia to children, staff and parents

Education: Bachelors degree in English Literature with Social work from UAE University

As a child: Kept sweets on the window sill for workers, set aside money to pay for education of needy families

Holidays: Spends most of her days off at Senses often with her family who describe the centre as part of their life too

Brief scores:

Toss: Sindhis, elected to field first

Kerala Knights 103-7 (10 ov)

Parnell 59 not out; Tambe 5-15

Sindhis 104-1 (7.4 ov)

Watson 50 not out, Devcich 49

Nick's journey in numbers

Countries so far: 85

Flights: 149

Steps: 3.78 million

Calories: 220,000

Floors climbed: 2,000

Donations: GPB37,300

Prostate checks: 5

Blisters: 15

Bumps on the head: 2

Dog bites: 1

In-demand jobs and monthly salaries
  • Technology expert in robotics and automation: Dh20,000 to Dh40,000 
  • Energy engineer: Dh25,000 to Dh30,000 
  • Production engineer: Dh30,000 to Dh40,000 
  • Data-driven supply chain management professional: Dh30,000 to Dh50,000 
  • HR leader: Dh40,000 to Dh60,000 
  • Engineering leader: Dh30,000 to Dh55,000 
  • Project manager: Dh55,000 to Dh65,000 
  • Senior reservoir engineer: Dh40,000 to Dh55,000 
  • Senior drilling engineer: Dh38,000 to Dh46,000 
  • Senior process engineer: Dh28,000 to Dh38,000 
  • Senior maintenance engineer: Dh22,000 to Dh34,000 
  • Field engineer: Dh6,500 to Dh7,500
  • Field supervisor: Dh9,000 to Dh12,000
  • Field operator: Dh5,000 to Dh7,000
WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Company profile

Date started: January, 2014

Founders: Mike Dawson, Varuna Singh, and Benita Rowe

Based: Dubai

Sector: Education technology

Size: Five employees

Investment: $100,000 from the ExpoLive Innovation Grant programme in 2018 and an initial $30,000 pre-seed investment from the Turn8 Accelerator in 2014. Most of the projects are government funded.

Partners/incubators: Turn8 Accelerator; In5 Innovation Centre; Expo Live Innovation Impact Grant Programme; Dubai Future Accelerators; FHI 360; VSO and Consult and Coach for a Cause (C3)

THE APPRENTICE

Director: Ali Abbasi

Starring: Sebastian Stan, Maria Bakalova, Jeremy Strong

Rating: 3/5

MATCH INFO

 

Maratha Arabians 107-8 (10 ovs)

Lyth 21, Lynn 20, McClenaghan 20 no

Qalandars 60-4 (10 ovs)

Malan 32 no, McClenaghan 2-9

Maratha Arabians win by 47 runs

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

UAE currency: the story behind the money in your pockets
Updated: July 27, 2021, 9:01 AM`