Saudi retail banks to outperform GCC peers in revenue growth: Boston Consulting  

Saudi retail banks to outperform GCC peers in revenue growth: Boston Consulting  

RIYADH: Banking revenue growth in Saudi Arabia is set to outstrip others in the region as increased spending in the environmental transformation fuels profits, according to the Boston Consulting Group. Analysis by the US-based firm forecasts the Kingdom’s retail banking revenues to grow at a Compound Annual Growth Rate of 11.4 percent between 2021 to 2026 — a rise from 8.7 percent from 2016 to 2021. This is higher than the Gulf Cooperation Council countries — the UAE, Saudi Arabia, Kuwait, Bahrain, and Qatar — as a whole, which are forecast to see an 8.8 percent CAGR within the same period to 2026. Recovery in oil prices combined with increased interest rates are key contributors to a post-pandemic revival, boosting economic growth and consumer spending, according to BCG, which also said increased spending on environmental, social, and governance and sustainability is the next frontier for competitive advantage in the sector. “Saudi Arabia has deployed hugely ambitious projects under Vision 2030. Acting as facilitators, instigators and key actors of change for the nation will be retail banks,” said Martin Blechta, principal at BCG. “ESG in banking is very much a credit portfolio review and there is a significant first mover’s advantage