Total assets held by the Saudi Central Bank, better known as Sama, jumped more than 8 per cent in July as foreign currency holdings remained stable and deposits in banks abroad climbed.
The central bank's assets stood at 2.01 trillion riyals ($533.3bn) in July after growing by 19.5bn riyals, or 1 per cent month on month, from 1.99tn riyals in June, according to its latest statistical report.
Deposits with banks abroad climbed more than 35 per cent to 331.21bn riyals, from 244.3bn riyals at the end of July 2021. However, they fell about 2 per cent on a monthly basis, from 338.14bn riyals in June, data showed.
Sama’s investments in foreign securities fell slightly to 1.12tn riyals in July, from 1.13tn riyals a month earlier. Its holdings in bullion and cash remained steady at 1.62bn riyals and 36.43bn riyals, respectively, in July.
Foreign currency holdings remained steady at 265.6bn riyals while the central bank's miscellaneous assets jumped more than 43 per cent to 246.45bn riyals on an annual basis, according to Sama’s statistical report for July.
The total assets of commercial banks in the kingdom grew more than 13 per cent to 3.53tn ($941.3bn) riyals at the end of July.
Their total claims on the private sector stood at 2.21tn riyals while total credit to public sector rose to 604.48bn riyals in the same month.
Saudi Arabia’s banking sector has made a strong rebound from the coronavirus-induced slowdown. The profitability of banks has improved significantly amid the economic recovery, driven by higher oil prices and continued growth momentum in the kingdoms non-oil economy.
The country's economy is set to grow at the quickest pace in a decade and could be one of the fastest-growing this year, according to the International Monetary Fund.
Gross domestic product is forecast to expand by 7.6 per cent this year, after a growth of 3.2 per cent in 2021, the fund said in its World Economic Outlook update in July.
Non-oil growth will increase to 4.2 per cent in 2022, before returning to its medium-term potential of 4 per cent.
The Saudi economy, the largest in the Arab world, grew 11.8 per cent in the second quarter of 2022, with oil-related economic activity rising 23.1 per cent annually.
Non-oil economic activity climbed 5.4 per cent during the period, according to government data released in July.
Credit extended by banks to public sector enterprises — including loans, advances and overdrafts — climbed to 111.07bn riyals at the end of July, from 88.43bn riyals a year earlier.
The total holdings of lenders in government and quasi-government bonds, including international conventional and Sharia-compliant bonds bought by banks from the secondary market, rose to 493.41bn riyals in July, up from 454.58bn riyals in the same month in 2021.
The central bank said total property loans by banks at the end of the second quarter of this year rose more than 77 per cent on an annual basis to 638.27bn riyals.
Property loans to retail clients almost doubled during the April-June period to 503.23bn riyals, while credit to corporate real estate clients stood at 135.04bn riyals, up from 109.62bn riyals from a year earlier, according to Sama's data.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs: 2017 Ford F-150 Raptor
Price, base / as tested Dh220,000 / Dh320,000
Engine 3.5L V6
Transmission 10-speed automatic
Power 421hp @ 6,000rpm
Torque 678Nm @ 3,750rpm
Fuel economy, combined 14.1L / 100km
The biog
Title: General Practitioner with a speciality in cardiology
Previous jobs: Worked in well-known hospitals Jaslok and Breach Candy in Mumbai, India
Education: Medical degree from the Government Medical College in Nagpur
How it all began: opened his first clinic in Ajman in 1993
Family: a 90-year-old mother, wife and two daughters
Remembers a time when medicines from India were purchased per kilo
UAE currency: the story behind the money in your pockets
FIXTURES
Thursday
Dibba v Al Dhafra, Fujairah Stadium (5pm)
Al Wahda v Hatta, Al Nahyan Stadium (8pm)
Friday
Al Nasr v Ajman, Zabeel Stadium (5pm)
Al Jazria v Al Wasl, Mohammed Bin Zayed Stadium (8pm)
Saturday
Emirates v Al Ain, Emirates Club Stadium (5pm)
Sharjah v Shabab Al Ahli Dubai, Sharjah Stadium (8pm)
The biog
Name: Timothy Husband
Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
UAE currency: the story behind the money in your pockets
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
Read more about the coronavirus
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
