Saudi Awwal Bank (known also as SAB) is a Saudi joint stock company and one of the large banks in the Kingdom of Saudi Arabia. It is the result of a legal merger between the Saudi British Bank and al-Awwal Bank in March 2021, with its headquarters located in Riyadh City. It has a history dating back more than ninety years. SAB was ranked first in 2021 among the best workplaces in the Middle East.
The Saudi Awwal Bank stocks are traded on the Saudi Exchange 'Saudi Tadawul' on the main platform within the banking sector under the name (SAB), symbol (1060), and International Securities Identification Number (ISIN) (SA0007879089).
Activity of Saudi Awwal Bank
Saudi Awwal Bank is a Saudi joint stock company licensed to practice banking activities, in compliance with the provisions of the Banking Control Law and the rules and regulations issued by the supervisory and regulatory authorities in the Kingdom. Established on January 21, 1978, the bank formally commenced activities when it took over the operations and services of The British Bank of the Middle East in the Kingdom. It is a major joint-stock banking and investment company. It started with a capital of SAR100 million, which doubled during the following years to reach SAR20,547,945,220 distributed over 2,054,794,522 shares with a nominal value of SAR10 per share. This was approved at the Extraordinary General Assembly meeting held on May 15, 2019. The bank is managed through an administrative organization that includes the general administration in Riyadh and regional departments in al-Khubar and Jeddah, with a branch network of approximately one hundred branches. It is one of the first Saudi banks to issue credit cards in the local market, use ATMs in initial public offering (IPO) operations in the Kingdom, and finance and support social responsibility programs.
Services of Saudi Awwal Bank
SAB carries out all banking activities inside and outside the Kingdom. Its statute specifies the activities it carries out, including opening current accounts, receiving deposits, opening savings accounts and similar activities, issuing, discounting, accepting and handling promissory notes, bills of exchange, drawing documents, and commercial papers. Other activities involve granting loans and providing other facilities, whether with or without guarantee, and dealing in stocks and debt securities for the company’s account or for the customers' accounts, in addition to owning, holding, selling and dealing with foreign currencies, commodities, metals and precious coins, as well as receiving money, documents, and things of value by way of deposit, loan, or safekeeping. It also provides creating, managing and renting deposit boxes, acting as an agent, correspondent, or representative for local or foreign banks, and collecting amounts due from a third party, whether inside or outside the Kingdom, on behalf of any other natural or legal person.
The merger process and the capital of SAB
The merger of SABB and al-Awwal Bank was completed on March 14, 2021, through a team consisting of three hundred members. Moreover, 4,500 corporate clients and five hundred thousand individual clients were migrated. The capital of SAB is estimated at SAR20.5 billion. The founders and shareholders subscribed to the company's entire capital and the value of the company's shares was paid in full. The statute stipulates that all shares are tradable, in compliance with the provisions of the Capital Market Law. Moreover, the statute also states that in the event of a capital increase, it must be taken into account that this issuance shall not in any way lead to an increase in the shares owned by non-Saudis beyond the percentages prescribed by law.
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