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 benchmark index closes lower at 10,540
RIYADH: Saudi equities ended Wednesday’s session lower, with the Tadawul All Share Index falling 55.13 points, or 0.52 percent, to close at 10,540.72.
The sell-off was mirrored across other indices, with the MSCI Tadawul 30 Index retreating 5.79 points, or 0.41 percent, to close at 1,393.32, while the parallel market Nomu slipped 74.56 points, or 0.32 percent, to 23,193.21.
Market breadth remained firmly negative, as decliners outpaced advancers, with 207 stocks ending the session lower against just 51 gainers on the main market.
Trading activity moderated compared to recent sessions, with volumes reaching 123.5 million shares, while total traded value stood at SR2.72 billion ($725.2 million).
On the sectoral and stock level, Al Moammar Information Systems Co. led the gainers after surging 9.96 percent to close at SR172.30, extending its rally following a series of contract announcements tied to data center and IT infrastructure projects.
Al Masar Al Shamil Education Co. climbed 4.89 percent to SR27.48, while Naqi Water Co. advanced 3.36 percent to SR58.50. Al Yamamah Steel Industries Co. and Al-Jouf Agricultural Development Co. also posted solid gains, rising 3 percent and 2.86 percent, respectively.
Losses, however, were concentrated in industrial names. Saudi Kayan Petrochemical Co. fell 3.67 percent to SR4.73, while Makkah Construction and Development Co. slid 3.44 percent to SR80.
Saudi Tadawul Group Holding Co. retreated 3.28 percent to SR147.50, weighed down by broader market weakness, and Saudi Cable Co. declined 3.18 percent to SR143.
Alkhaleej Training and Education Co. rounded out the top losers, shedding just over 3 percent.
On the announcement front, BinDawood Holding announced the signing of a share purchase agreement to acquire 51 percent of Wonder Bakery LLC in the UAE for 96.9 million dirhams, marking a strategic expansion of its food manufacturing footprint beyond Saudi Arabia.
The acquisition, which remains subject to regulatory approvals, is expected to support the group’s regional growth ambitions and strengthen supply chain integration.
BinDawood shares closed at SR4.68, up 0.43 percent, reflecting a positive market reaction to the overseas expansion move.
Meanwhile, Al Moammar Information Systems disclosed the contract sign-off for the renewal of IT systems support licenses with the Saudi Central Bank, valued at SR114.4 million, inclusive of VAT.
The 36-month contract is expected to have a positive financial impact starting from fourth quarter of 2025, reinforcing MIS’s position as a key technology partner for critical government institutions. The stock surged to the session’s limit making it the top gainer.
In a separate disclosure, Maharah Human Resources confirmed the completion of the sale of its entire stake in Care Shield Holding Co. through its subsidiary, Growth Avenue Investments, for a total consideration of SR434.3 million.
The transaction involved the transfer of 41.36 percent of Care Shield’s share capital to Dallah Healthcare, with Maharah receiving the full cash proceeds.
Despite the strategic divestment, Maharah shares closed lower, ending the session at SR6.12, down 1.29 percent.
