BANKS
Saudi Arabia's economy is going through transformational changes, and banks will need to change to support their customers.


How do recent reforms influence your business and overall strategy?
Soren Nikolajsen Vision 2030 and the National Transformation Plan bring exciting and significant changes to the Saudi economy. The push away from high dependency on the oil-related sectors will for banks result in an adjustment to our business activity and open up new opportunities in the private and non-oil sectors. The land tax, introduction of VAT, and capital market reforms are other initiatives that will affect the Saudi economy in different ways. On the capital markets side, we welcome the push from the regulators to encourage a more active corporate bond market. On equities, the potential inclusion of the Saudi stock market to the MSCI Emerging Markets Index would be very positive and help improve liquidity in the market.
How have your retail banking operations been performing?
Abdulaziz Al-Onaizan Over the years, our strategy was to expand our branch network. Today, we have the fifth-largest branch network. We have more than 150 branches and more than 175 remittance centers across the Kingdom. We want to optimize the existing branch network in terms of service, customer care and experience, as well as to digitize our operations. This year, we opened five self-service centers that can operate with extended hours to basically cater for self-service needs, like applying for consumer loans or card products.
To what extent do market developments affect your future strategy?
SN Technology and digital services will play a particular important role for the industry in order to meet the needs and demands of our customers. Banking in general, and retail banking in particular, is changing rapidly. 97% of basic transactions like withdrawing money, paying bills, and making transfers are today done via electronic platforms such as online, mobile, or ATMs. That is a significant shift from the past, and demands a lot from us as a financial services provider in terms of what products we offer and how we deliver them. And growth is strong. Last year the usage of our market-leading mobile application grew by 65% and mobile payments by 171%.
Do you expect a boom in the Islamic finance industry in Saudi Arabia now, as interest is heightening?
AAO On the consumer side, it has grown substantially, and we have seen conversion of conventional banking to sharia-compliant banking. Society is conservative by nature, and if we offer both sharia-compliant and non sharia-compliant financial products, people will choose the former. Islamic banking is becoming popular in the international markets as well. After a financial crisis, people will always look for new ways of financing to basically share the risk. Conventional financing is all about transferring the risk. On the other hand, sharia financing is about risk sharing; therefore, we are close to the client throughout the lifecycle of the transaction.
What are your goals and objectives for the next 12 months?
SN We will stay focused on our core business areas and serve our customers well. The overall business mix is roughly where we want it to be, so there are no big strategic deviations. A key focus area remains to be the development of our digital services as we continue to be a leading innovator of financial services products in the Kingdom.
AAO For Saudi Arabia, the worst is behind us. We have had difficult times over the last two years with the drop in oil prices. The government has taken concerted actions to reduce spending and find alternative ways to finance the deficit. Given these efforts by the government to manage the fiscal position of the country, lowering the deficit will be better than expected. We are optimistic about Bank Albilad's future and confident all these initiatives we are taking to enhance the business will be successful. We are trying to manage the efficiency in the organization that will put us in a better and stronger position. We are focusing on digitizing our services in retail banking and cross-selling as well as SME business supported by the government, which we believe will be the main drivers of growth.

TABLE OF CONTENTS
Column
YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister’s Office & Second Minister of Foreign Affairs and Trade, Brunei
TBY talks to YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister's Office & Second Minister of Foreign Affairs and Trade, Brunei, on the sector.
read articleReview
A Crude Awakening
The Kingdom has made renewables a critical aspect of its ambitious Vision 2030 effort to diversify its economy and wean itself from a strictly carbon-based diet, not to mention empower local businesses and individuals to take up the mantle and lead the energy sector into the next generation.
read articleInterview
Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) , Saudi Aramco,
TBY talks to Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) at Saudi Aramco, on the IKTVA program, supporting local content, and looking back over a successful year.
read articleInterview
Ayman Abdullah Alfallaj, CEO, Thiqah
TBY talks to Ayman Abdullah Alfallaj, CEO of Thiqah, on how the private sector can keep pace with the speed of public reforms, delivering a strong and lasting value proposition, and integrating the fruits of privatization into the public sector.
read articleFocus: Technology Investments
Investment Calling
A technological revolution is underway in the Kingdom. Already one of the most tech-savvy nations in the Middle East, the Saudi market has long sought a thriving domestic technology and innovation scene. And with Vision 2030, it is on course to deliver just that.
read articleReview
A Hejaz Unhindered
An ambitious series of road and rail projects from the Jordanian border down to the Indian Ocean are slated to open in part before the end of 2017. They bring the Kingdom that much nearer to its goal of greater non-carbon-based economic integration with the world.
read articleInterview
Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and Minister, Civil Service
TBY talks to Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and current Minister of Civil Service, on an attractive legislative framework for investment, railway linkages, and port developments.
read articleInterview
Rumaih M. Al-Rumaih, President, Public Transport Authority (PTA
TBY talks to Rumaih M. Al-Rumaih, President of Public Transport Authority (PTA) & Acting President of Saudi Railway Organization, on teaming up with commercially committed partners, making sure the Kingdom's land and sea bridges are of the first order, and providing employment for all the Kingdom's inhabitants.
read articleInterview
Nabeel M. Al-Amudi, President, Saudi Ports Authority, and Minister of Transport
TBY talks to Nabeel M. Al-Amudi, Minister of Transport, and President of Saudi Ports Authority, on optimally restricting concession agreements, resolving bottlenecks in the logistics chain, and privatizing as rapidly as possible.
read articleInterview
Khaled Bin Abdullah Al Hogail, CEO & Managing Director , Saudi Public Transport Company (SAPTCO)
TBY talks to Khaled Bin Abdullah Al Hogail, CEO & Managing Director of the Saudi Public Transport Company (SAPTCO), on the importance of strong and rational regulations, knowledge transfers, and unifying public and private transportation networks.
read articleInterview
Imad El-Zein, CEO, Auto World-Sixt Saudi Arabia
TBY talks to Imad El-Zein, CEO of Auto World-Sixt Saudi Arabia, on growing market share in challenging circumstances, partnering with world-class players to boost its local presence, and combining better services with lower costs.
read articleInterview
Saleh H. Al-Ghamdi, Acting CEO, Saudi Air Navigation Services Company (SANS)
TBY talks to Saleh H. Al-Ghamdi, Acting CEO of Saudi Air Navigation Services Company (SANS), on maximizing safe and effective services, effectively increasing the rate of Saudization, and easing the pathway of women into the workforce.
read articleInterview
Khalil Kutubkhanah, CEO, Jeddah Development and Urban Regeneration Company (JDURC)
TBY talks to Ibrahim Khalil Kutubkhanah, CEO of Jeddah Development and Urban Regeneration Company (JDURC), on Jeddah's unplanned settlements, the company's redevelopment projects, and its partnership model with the private sector.
read articleInterview
Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister, Planning and Health & Director of the Vision Realization Office
TBY talks to Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister for Planning and Health & Director of the Vision Realization Office, on reforms within the Ministry of Health, the corporatization of healthcare provision, and transformations in care delivery.
read articleInterview
Mohanad A. Dahlan, CEO, University of Business and Technology (UBT) Company
TBY talks to Mohanad A. Dahlan, CEO of University of Business and Technology (UBT) Company, on the evolution of the company, education investments, and upcoming sectors that will need support from the sector.
read articleFocus: Universities
Broad and Deep
As part of the continuing decentralization of higher education in Saudi Arabia, individual universities are pursuing their own paths to grow their faculties, engage with various international stakeholders, and ultimately move toward a more privatized future.
read articleInterview
Rafique Izhiman, Area General Manager KSA Jeddah, Yanbu Hotels
TBY talks to Rafique Izhiman, Area General Manager KSA Jeddah/Yanbu Hotels & General Manager, Intercontinental Hotel Group (IHG), Jeddah, on the role the firm plays in the market, expanding its footprint in the country, and expectations for 2017.
read article