Saudi Arabia leads Forbes’ “30 Most Valuable Banks 2025” list with ten banks valued at $269 billion, comprising nearly a third of the total market capitalization of $600.8 billion. The UAE, Qatar, Morocco, and Kuwait also featured prominently. The banking sector in the MENA region is expected to grow due to economic diversification and favorable conditions, supported by robust capital buffers and higher interest rates.
Forbes recently unveiled its “30 Most Valuable Banks 2025” ranking, revealing Saudi Arabia’s significant presence with ten banks contributing to a combined market value of $269 billion. This constitutes nearly one-third of the total market capitalization of $600.8 billion for the listed banks in the Middle East and North Africa (MENA) region.
Following Saudi Arabia, the United Arab Emirates (UAE) had seven banks valued at $153.4 billion. Qatar placed six banks on the list with a total worth of $76.7 billion. Additionally, Morocco and Kuwait secured three and two banks, respectively, with market values of $23.7 billion and $68.4 billion. This indicates a strong representation from various nations in the region, further emphasizing the financial sector’s diversity.
A report by Ernst & Young suggests that the MENA banking sector is poised for substantial growth in 2025, backed by economic diversification and encouraging financial conditions, alongside a projected 3.5 percent economic expansion due to infrastructure projects and increasing non-oil activities. Forbes highlighted that this year’s list comprises banks from seven countries, with 26 being based in the Gulf.
Al-Rajhi Bank led the ranking as the most valuable bank in the region, with a market capitalization of $105.6 billion, accounting for 17.6 percent of the total market value. Saudi National Bank and UAE’s First Abu Dhabi Bank followed, valued at $54.7 billion and $43.7 billion, respectively. Other notable banks include Qatar’s QNB Group and Kuwait Finance House, along with Emirates NBD and National Bank of Kuwait.
The MENA banking sector has demonstrated resilience over the past year, bolstered by increased interest rates and favorable oil prices. A 2024 report from Fitch Ratings noted that liquidity levels, profitability, and robust capital buffers have remained strong for many banks in the Gulf Cooperation Council. Forbes Middle East compiled these rankings based on reported market values as of January 31, 2025, excluding subsidiaries of listed firms and considering currency exchange rates as of the same date.
In conclusion, Saudi Arabia’s dominance in the Forbes “30 Most Valuable Banks 2025” list showcases the Kingdom’s robust banking sector, which is significantly bolstered by its strong economic performance. The anticipated growth fueled by favorable conditions and diversification reaffirms the resilience of MENA’s banking industry. With leading banks like Al-Rajhi Bank at the forefront, the region is well-positioned for further financial advancement in the coming years.
Original Source: www.arabnews.pk
