Saudi Arabia Leads Forbes’ 2025 MENA Most Valuable Banks List

The “30 Most Valuable Banks 2025” by Forbes shows Saudi Arabia leading with 10 entries and a market value of $269 billion. The UAE follows with seven banks valued at $153.4 billion, while Qatar has six banks worth $76.7 billion. Al-Rajhi Bank secures the top position at $105.6 billion, supported by a resilient banking sector in the region due to economic growth and diversification.

Forbes has published its “30 Most Valuable Banks 2025” ranking, where Saudi Arabia emerged as the predominant leader with ten banks totaling a combined market value of $269 billion. This represents approximately one-third of the overall market capitalization of $600.8 billion for all listed banks in the MENA region. The United Arab Emirates secured the second position with seven banks valued at $153.4 billion, followed by Qatar with six banks valued at $76.7 billion. Additionally, Morocco and Kuwait contributed three and two banks, respectively, with market values of $23.7 billion and $68.4 billion.

The MENA banking sector is expected to experience significant growth in 2025, according to a report from Ernst & Young. This growth is attributed to ongoing economic diversification, advantageous financial conditions, and a projected 3.5 percent economic expansion, primarily driven by infrastructure projects and increased non-oil activities. Forbes emphasized the diversity of this year’s list, noting that it includes banks from seven countries, with 26 being Gulf-based institutions, underscoring Saudi Arabia’s dominance.

Al-Rajhi Bank has maintained its status as the region’s most valuable bank, with a market capitalization of $105.6 billion, accounting for 17.6 percent of the combined market value of the top 30 banks. It was closely followed by Saudi National Bank and First Abu Dhabi Bank, valued at $54.7 billion and $43.7 billion, respectively. Other significant banks include Qatar’s QNB Group and Kuwait Finance House, which ranked fourth and fifth with market values of $41.2 billion and $38.3 billion, respectively.

The stability of the MENA banking sector is supported by favorable economic conditions, including rising interest rates and robust oil prices. A Fitch Ratings report highlights the region’s favorable economic environment, which has sustained liquidity levels, profitability, and strong capital buffers for most banks within the Gulf Cooperation Council. Forbes Middle East’s rankings were compiled based on the reported market values of publicly listed banks in the Arab world as of January 31, 2025, excluding subsidiaries of listed companies, with currency exchange rates set on the same date.

In conclusion, Saudi Arabia’s prominence in the “30 Most Valuable Banks 2025” list reflects the strength and resilience of its banking sector. With continued economic growth anticipated and key banks like Al-Rajhi Bank leading the charge, the region’s financial landscape appears robust, bolstered by effective economic diversification and favorable market conditions. The broader MENA region is well-positioned for sustained growth, highlighting the importance of these institutions in future economic endeavors.

Original Source: www.arabnews.pk