Saudi banks among most profitable globally, tapping international markets not an issue: Al-Jadaan

Minister of Finance Mohammed Al-Jadaan

Saudi banks are among the most profitable globally, Minister of Finance, Mohammed Al-Jadaan, said.

He added that Kingdom's banking sector is ranked among the top five strongest banking sectors in the world. This ranking is based on international data and assessments from the International Monetary Fund (IMF) and global credit rating agencies.

In an interview with Al Arabiya, Al-Jadaan added that borrowing from international markets does not indicate any liquidity issues.

He explained that the IMF and other specialized international organizations consistently recommend that banks diversify their portfolio of assets and liabilities in a more prudent and balanced manner. They suggest relying on capital or alternative forms of capital, such as certain types of bond issuances and sustainable or perpetual sukuk, instead of solely depending on deposits.

Al-Jadaan also mentioned that Saudi banks will move towards borrowing and incurring debt at higher costs, as they have the capacity to achieve returns that far exceed the cost of financing.