Saudi Arabia: Algosaibi no longer Samba chairman

Algosaibi no longer Samba chairman Mohammed Rasooldeen Arab News

Saud Algosaibi RIYADH: Samba Financial Group, Saudi Arabia's second-largest bank in terms of market value, announced Sunday that Saud bin Abdulaziz Algosaibi is no longer its chairman or a board member. The announcement was made in a statement to the Saudi bourse. Samba gave no reason but said that the move was effective Sept. 12. Algosaibi is also a senior executive of troubled Ahmad Hamad Algosaibi & Bros (AHAB). AHAB, the Alkhobar-based Algosaibi family holding company, has been involved in legal battles after its Bahrain-based banking unit defaulted on payments. The family accuses Maan Al-Sanea, chairman of Saad Group, of fraud totaling $10 billion. A Saad group spokesman said Aug. 1 the company would respond through the judicial process. The two groups have borrowed at least $15.7 billion from more than 80 regional and international banks, including the Paris-based BNP Paribas, the New York-based Citigroup Inc. and Arab Bank in Amman, Jordan, according to documents provided by lenders. About $5 billion of that is owed to Saudi banks, Standard Chartered said in an Aug. 26 report. Last week, Muhammad Al-Jasser, governor of Saudi Arabian Monetary Agency (SAMA) said that the debts of Saad Group and Ahmad Hamad Algosaibi & Bros did not pose any major threat to Saudi banks. "There is no systemic risk on the Saudi banking system from the debts of these two firms. Profitability, however, could be affected." The governor said that since the two firms could possibly affect the business sector in the Kingdom and its reputation, the government has set up a special committee to monitor them and take appropriate action. Samba's shares closed up 0.24 percent at SR42.60 on Sunday in a broadly positive Saudi market before the announcement. Meanwhile, Saudi Arabia's Public Pension Agency (PPA), the Kingdom's second-largest pension fund, boosted its stake in Samba on Saturday by 2.2 percent to 12.4 percent, official data showed Sunday. The Public Investment Fund (PIF) continues to be the largest stakeholder in Samba with 22.9 percent, while Saudi Arabia's largest pension fund, the General Organization for Social Insurance (GOSI), holds 11.4 percent, according to data posted on the Saudi bourse website. Maan Al-Sanea remains the fourth-largest shareholder in Samba, with a 7.8 percent stake, data showed.