Saudi Arabia Leads Forbes 2025 Ranking of MENA’s Most Valuable Banks

In the Forbes 2025 list of MENA’s most valuable banks, Saudi Arabia leads with ten entries valued at $269 billion, contributing to a total market value of $600.8 billion. The UAE and Qatar follow with 7 and 6 banks, respectively. The MENA banking sector exhibits resilience, anticipating growth due to economic diversification and higher oil prices, with Al-Rajhi Bank ranking as the most valuable institution.

Saudi Arabia significantly influences the Forbes 2025 list of the “30 Most Valuable Banks in MENA,” securing ten positions with a combined market value of $269 billion. This achievement represents nearly one-third of the total market capitalization of $600.8 billion for the listed banks. Following Saudi Arabia, the United Arab Emirates showcased seven banks valued at $153.4 billion, while Qatar presented six banks worth $76.7 billion. Morocco and Kuwait contributed three and two banks, respectively, with market values of $23.7 billion and $68.4 billion.

The resilience of the MENA banking sector points towards strong growth indicators for 2025, influenced by economic diversification and favorable financial conditions. A report from Ernst & Young anticipates a projected economic growth of 3.5 percent, driven by ongoing infrastructure projects and increased non-oil activities. Forbes highlighted the diverse representation of banks, noting that twenty-six of the thirty entries originate from Gulf nations, with Saudi Arabia accounting for a significant portion of the total value in their latest ranking announcement.

Al-Rajhi Bank has retained its leading position as the most valuable bank in the region, boasting a market capitalization of $105.6 billion, which constitutes 17.6 percent of the collective value of the thirty banks. Saudi National Bank follows with a valuation of $54.7 billion, while Abu Dhabi Bank stands at $43.7 billion. Notably, Qatar’s QNB Group and Kuwait Finance House occupy the fourth and fifth rankings with market valuations of $41.2 billion and $38.3 billion, respectively, alongside other prominent banks in the sector.

Over the past year, the MENA banking sector has demonstrated noteworthy stability, bolstered by elevated interest rates and robust oil prices. A Fitch Ratings report from 2024 confirmed that these conditions have maintained liquidity levels, profitability, and strong capital buffers for many banks within the Gulf Cooperation Council. Forbes Middle East compiled this ranking using the reported market values of publicly traded banks as of January 31, 2025, excluding subsidiaries of listed companies and utilizing the currency exchange rates from the same date.

The Forbes 2025 ranking emphasizes Saudi Arabia’s dominant position in the MENA banking sector, accounting for a significant portion of the total market capitalization. With projections of economic growth and a resilient banking environment supported by favorable conditions, the region is poised for continued development. Al-Rajhi Bank’s leading market value highlights the strength of financial institutions within the Kingdom and the Gulf region as a whole.

Original Source: www.arabnews.pk