Royal Bank of Scotland (RBS) said on Sunday the completion of a merger between Alawwal bank and Saudi British Bank would lead to RBS shedding $5.9 billion of risk weighted assets and boost its core capital.
RBS, through Dutch subsidiary NatWest Markets N.V., was part of a consortium including NLFI and Banco Santander S.A. that held an aggregate 40% equity stake in Alawwal bank, the British bank said in a statement. RBS also had an interest equivalent to a 15.3% stake in Alawwal bank.
RBS said that as a result of the merger completion, it would recognise an income gain on disposal of the Alawwal bank stake for shares received in Saudi British Bank of almost $503 million and a reduction in risk weighted assets of nearly $5 billion.
RBS also said the deal would extinguish legacy liabilities of almost $377.
The changes would increase the bank's CET1 core capital ratio by 60 basis points, it said.
The merger will also help RBS to focus on its target markets, RBS chief executive Ross McEwan said in a statement.
RBS, which was rescued in 2008 with a nearly $57 billion capital injection by the British government, has been shrinking its overseas operations since the financial crisis to focus on its UK lending operations.
RBS says Saudi bank merger boosts its core capital
RBS says Saudi bank merger boosts its core capital
- RBS had a 15.3% interest in Alawwal bank
- The changes would boost the banks CET1 core capital ratio by 60 basis points
Saudi Arabia ranks 5th worldwide in AI sector growth, leads Arab nations
RIYADH: Saudi Arabia has secured the fifth rank globally and first in the Arab region for growth in the artificial intelligence sector, the Saudi Press Agency reported, citing data from Global AI Index.
According to the report, this development underscores the Kingdom’s progress in AI, reflecting the success of Saudi Arabia’s development plans and its ability to achieve high international competitiveness under its economic diversification strategy Vision 2030.
The Kingdom aims to position itself as a technological hub by the end of this decade as it continues its economic diversification efforts, reducing its reliance on crude oil revenues.
In November, a survey report released by KPMG also highlighted Saudi Arabia’s progress in the technological sector.
It noted that 84 percent of CEOs in the Kingdom are ready to deploy AI responsibly, well above the global benchmark of 76 percent, supported by the country’s data governance ecosystem, including national initiatives led by the Saudi Data and Artificial Intelligence Authority.
“During the period measured by the Global AI Index, Saudi Arabia launched a wide range of national initiatives led by SDAIA. These initiatives strengthened Saudi Arabia’s position on the index,” said SPA.
SDAIA’s initiatives during the period included multiple projects, particularly the Rowad Package initiative, which empowers entrepreneurs and startups to authenticate customer data through electronic linkage to the National Information Center’s databases.
The authority also launched the AI Ethics Incentive Badges initiative to raise awareness of ethical practices and promote the responsible use of technologies.
This initiative offers a comprehensive framework to help organizations and developers align with global best practices.
SPA added that over 50 accreditation certificates have been granted to national AI companies for developing AI-based products serving priority sectors in the Kingdom.
The Gaia generative AI accelerator, backed by SDAIA and the National Technology Development Program with New Native as a partner, is also accelerating startup development, enabling new companies to launch and scale more effectively.
“These efforts also extended to the SDAIA Academy, which has focused on building national capabilities and empowering young talent through advanced training programs in data and AI, offered in partnership with international organizations,” reported SPA.
It added that SDAIA Academy has trained over 1 million Saudis in data and AI skills through the SAMAI initiative, carried out in partnership with various government entities.
This training program is considered one of the world’s largest, targeting the general population.
“These achievements highlight SDAIA’s success in the field of data and AI, both nationally and internationally. They reinforce its role as the Kingdom’s central authority for regulation, development, and application, and advance the nation toward leadership in data- and AI-driven economies,” concluded SPA.
In October, Humain, an AI company owned by Saudi Arabia’s Public Investment Fund, partnered with AirTrunk, which is backed by BlackRock and the Canada Pension Plan Investment Board, to develop hyperscale data centers in the Kingdom.
The first phase of the collaboration includes an estimated $3 billion investment to build a major data-center campus in Saudi Arabia, according to a press statement.
