Robust and dynamic financial institutions are crucial for a country’s long-term development. Accordingly, banking has been a core part of Saudi Arabia’s strategy to modernise and diversify its economy since it launched its Vision 2030 programme in 2016. To learn more about the importance of banking in driving economic growth and diversification in the country, Sir Martyn Lewis for Inside Saudi interviewed Abdulaziz Al-Helaissi, Group CEO of Gulf International Bank (GIB). In 2019, GIB became the first non-Saudi bank to have a locally incorporated arm in the Kingdom. Since then, it has continued to play a vital role in supporting the Kingdom’s economic transformation.

Sir Martyn Lewis (ML) – You have been a banker for more than three decades. Have you ever seen an economic transformation moving as quickly as Saudi Arabia’s in the last eight years?

Abdulaziz Al-Helaissi (AAH) – Saudi Arabia is undergoing more than just a transformation – it is an economic and social metamorphosis. The breadth and depth of reform and restructuring that is underway is unprecedented. There really is no other country in the world that the Vision 2030 program can be compared to. The ambition to diversify away from oil and gas has fuelled the expansion across a wide variety of sectors including tourism, culture, healthcare, housing, financial, and renewable energy, supported by the many giga-projects that are already well underway. The sovereign wealth fund and the public sector are at the forefront of the investments with the aim to create opportunities for the private sector and encourage foreign direct investment. This is already showing results with the ever-increasing private sector participation and further growth potential for FDI inflows.

ML – Can you point to a trigger for the economic expansion of Saudi? One particular moment? Or was it more a case of a number of factors coming together at the same time?

AAH – Vision 2030 coincided with the leadership transition in Saudi Arabia. In 2016, King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman Al Saud introduced an ambitious blueprint to steer a new course for the Kingdom. The ambition behind the program has been to enhance the quality of life for Saudis and diversify the economy at a pace and scale beyond oil. Eight years after its introduction, the accomplishments of Vision 2030 so far have been nothing short of impressive, with future prospects equally positive.

ML – In 2019 GIB’s Saudi arm became the first foreign bank to have a locally incorporated bank in the Kingdom of Saudi Arabia. Can you tell us why this was such an important event for GIB and Saudi Arabia?

AAH – The incorporation of Gulf International Bank Saudi Arabia (GIB KSA) in 2019 was a momentous occasion. Being predominantly owned by the Public Investment Fund (PIF, Saudi Arabia’s sovereign wealth fund), expansion in Saudi Arabia was a natural path. GIB KSA is a key strategic market for the GIB group contributing a significant part to our net income. The bank’s structure allows us to offer a wide range of products, services and expertise to our KSA clients both locally and through other Group entities (Sustainability, Investment Banking, Asset Management, Structuring and Advisory, etc.). The active execution of Saudi Arabia’s economic reform program, Vision 2030, which aims to deliver growth in wide range of sectors, requires the banking sector to play a major role in the economic overhaul that is required. GIB’s wide suite of products and services are well suited for our clients across various sectors and we continue to support their journey by providing access to funding, markets and services.

ML – Before the end of the year you closed a significant capital issuance. You said that was a key part of your plans to capitalise on growth opportunities in the Kingdom. Why was that issuance so significant?

AAH – The capital issuance was a crucial milestone for the bank because it provided the necessary financial fuel to seize growth opportunities within the Kingdom. By raising significant capital, we bolstered our resources to invest in strategic initiatives, expand our operations, and innovate within our industry. This infusion of funds not only strengthened our financial position but also demonstrated investor confidence in our vision and prospects for growth. Ultimately, it enabled us to execute our strategic plans with confidence and agility, positioning us for sustainable success in the dynamic market landscape in line with the Kingdom’s Vision 2030.

ML – You recently provided a non-Saudi oil and gas operator with a sizeable facility to support their efforts in KSA. Is that a model for future partnerships with western based firms?

AAH – GIB’s unique geographic footprint enables us to better support international clients doing inward business in the GCC. Our local coverage teams based out of London and New York are complemented by a specialised coverage team based in KSA dedicated to covering Multi National Corporations (MNCs) operating in the region. The initiatives under the Saudi Vision 2030 are bound to see increased interest of MNCs into the region, which we are poised to support.

ML – How exciting is it for you personally to work for a bank so closely aligned to the ambition shown by the PIF?

AAH – Very exciting indeed! Leading a bank so closely in sync with KSA’s ambition and with the ability to create value and contribute to Vision 2030 goals is not just exciting, it’s also incredibly rewarding. Being part of the PIF portfolio of companies, GIB is very proud to support the PIF’s goal to be a leading global investor and commitment to sustainable investments, with the aim of driving Saudi Arabia’s economic transformation agenda as well as shaping the future global economy. GIB has aligned its strategy with PIF’s strategic program and enhanced its geographic footprint as well as built its sustainability strategy. We have collaborated with PIF from both a business and operational efficiency perspective including banking transactions, providing financial advisory services for landmark PIF transactions, sponsoring Al-Nassr Football Club, and engaging in efficiency initiatives led by PIF programmes, to name a few.

ML – GIB Saudi is involved in a raft of exciting projects across KSA. Can you tell us about the important role that GIB has played in supporting these projects?

AAH – The momentum generated with the rollout of the Saudi Vision 2030 has opened innumerable opportunities as multiple innovative projects and initiatives are continuously being launched. As a local bank, we are honoured to have been able to play a partnering role in supporting some of the landmark projects that will shape the future of the Kingdom and look to be in the forefront of the many exciting initiatives that are yet to come.

ML – How do you think perceptions of Saudi as a place to do business have shifted in the past few years?

AAH – Saudi Arabia’s continuous growth, reforms and policy initiatives have significantly changed its perception as a key country not just within the GCC but at a global level. Under the Saudi Vision 2030 reform program, Saudi Arabia has transitioned into a more inclusive, expansive, sustainable and integrated nation. The wave of reforms has created an environment for businesses to scale, investors to thrive, citizens to nurture and be empowered and a nation to work towards a sustainable future.

All article images used with permission from GIB.