The transaction has been widely reported as historic, as two leading Saudi banks come together to create a regional financial powerhouse with the scale to maximize growth opportunities.

Through economies of scale, the merger will create growth potential not only for both banks’ stakeholders but for the Saudi banking sector and the wider economy.

Cost synergies alone are expected to generate annual savings of about SAR 800 million. The merger will also lead to long-term strategic and financial value as a larger franchise that will provide more opportunity inside and outside Saudi Arabia.

Data from more than 20 international markets indicate that similar mergers have delivered significant value and higher return on investment. In an economy of Saudi Arabia’s stature, amid one of the world’s most transformational national programs, the presence of advanced and highly capitalized banks is an essential asset.

The merged entity be a key enabler of growth and will support Saudi businesses in their regional and international expansion aspirations.

Now is an opportune time for Saudi Arabia to form a hub for banking innovation. The merged bank will drive the future of banking with enhanced products and unparalleled customer experience.

Access to new generation banking services results in empowered entrepreneurs and SMEs that can deliver economic diversification. For the people of Saudi Arabia, innovative banking has never been more crucial. It will nurture a vibrant society, fulfill housing needs, and provide simplified banking.

The pooled talent and expertise will ensure that customers experience new banking standards and gain access to a wider range of products and services.

Saudi Arabia’s banking sector is at a turning point as the Kingdom’s new banking champion prepares to advance Vision 2030. We envisage a hub for innovation, talent development, and world-class customer experiences that will take the economic and social contribution of Saudi Arabia’s banking sector to a new level.