DUBAI: Qatar National Bank (QNB), the largest bank in the Middle East and Africa, has put on hold plans to connect to Saudi Arabia’s interbank payment network, as a regional political rift disrupts its growth plans in the kingdom, sources familiar with the matter said.
In May, the lender opened a branch in Riyadh, its first in the kingdom, offering retail and corporate banking services.
But while the branch is operational, QNB has not yet completed steps to connect to the Saudi Arabian Riyal Interbank Express (SARIE) system, which allows commercial banks in the kingdom to make and settle payments in riyals and is an important step for lenders operating there, the sources said.
They said the delay was prompted by the political rift, which led to Saudi Arabia, United Arab Emirates, Bahrain and Egypt on June 5 suspending diplomatic and transport ties with Qatar.
In a statement, a QNB spokesperson said its operations in Saudi Arabia were operating as normal.
“The Kingdom of Saudi Arabia continues to be a strategic market for QNB and we still envisages that in the future the Kingdom of Saudi Arabia will be a significant opportunity for growth,” it said.
Saudi Arabia’s central bank, which is in charge of operating SARIE, did not respond to a Reuters request for comment.
After gaining a commercial banking license from the regulator, QNB inaugurated its Riyadh branch on May 4 in a ceremony attended by Saudi Arabia’s central bank governor Ahmed Al-Kholifey and QNB’s chief executive Ali Ahmed Al-Kuwari.
The sources said the branch had connected to the SWIFT messaging system, allowing it to make payments inside and outside of Saudi Arabia.
But SARIE is more commonly used among banks in the kingdom as it is faster and cheaper for money transfers.
At the time of the inauguration, Al-Kuwari said QNB planned to apply for an investment banking license in Saudi Arabia.
In the statement, QNB said that was “still under consideration.”
QNB has banking interests in two of the other countries Qatar has fallen out with. A separate banking source told Reuters that QNB’s unit in Egypt was operating as normal, while a QNB spokesman said last month the lender’s 40 percent stake in UAE-based Commercial Bank International was not for sale.
Qatar National Bank’s link-up to Saudi payment network delayed: sources
Qatar National Bank’s link-up to Saudi payment network delayed: sources
Closing Bell: Saudi main index closes in red at 11,183
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Monday, losing 44.79 points, or 0.4 percent, to close at 11,183.85.
The total trading turnover of the benchmark index was SR4.05 billion ($1.08 billion), as 69 of the listed stocks advanced, while 191 retreated.
The MSCI Tadawul Index decreased, down 6.63 points or 0.44 percent, to close at 1,504.73.
The Kingdom’s parallel market Nomu lost 328.20 points, or 1.36 percent, to close at 23,764.92. This comes as 22 of the listed stocks advanced, while 49 retreated.
The best-performing stock was Maharah Human Resources Co., with its share price surging by 7.26 percent to SR6.50.
Other top performers included Arabian Cement Co., which saw its share price rise by 6.27 percent to SR22.71, and Saudi Research and Media Group, which saw a 4.3 percent increase to SR104.30.
On the downside, the worst performer of the day was Arabian Internet and Communications Services Co., whose share price fell by 8.01 percent to SR207.80.
Jahez International Co. for Information System Technology and Al-Rajhi Co. for Cooperative Insurance also saw declines, with their shares dropping by 5.61 percent and 4.46 percent to SR12.79 and SR75, respectively.
On the announcement front, Etihad Etisalat Co. announced its financial results for 2025 with a 7.9 percent year-on-year growth in its revenues, to reach SR19.6 billion.
In a Tadawul statement, Mobily said that this growth is attributed to “the expansion of all revenue streams, with a healthy growth in the overall subscriber base.”
Mobily delivered an 11.6 percent increase in net profit, reaching SR3.4 billion in 2025 compared to SR3.1 billion in 2024.
The company’s share price reached SR67.85, marking a 0.37 percent increase on the main market.
