Arab National Bank for Corporates: Comprehensive Analysis of Corporate Services

Arab National Bank was established by royal decree in 1979 and began its actual operations in early 1980 by transferring the operations of Arab Bank Limited in the Kingdom to an independent Saudi entity. Since then, the bank has worked to build a solid base of banking services, with an early focus on meeting the needs of companies and national institutions. In its early days, the bank relied on a relatively modest branch network, but it quickly expanded to cover most regions of the Kingdom, benefiting from rapid economic growth in the 1980s and 1990s.

As the Saudi economy evolved and the corporate sector expanded, Arab National Bank sought to innovate in banking products and develop solutions suitable for the local business environment. During the 1990s and early 2000s, the bank adopted several strategic initiatives, such as launching its first online banking services and cash management services for companies, enhancing its market position. The bank also invested in qualified human resources, establishing specialized training centers to support its employees in keeping up with the latest banking and technological developments.

With the advent of the new millennium, the bank focused on developing the corporate sector by introducing new products such as major project financing programs, export and import financing, in addition to Islamic banking services, becoming a trusted financial partner for companies looking to expand both within the Kingdom and abroad. Today, the bank continues to develop its strategies to keep pace with economic transformations, supported by strong financial policies and a robust management structure. The bank's recent transition to a digital business model is a testament to its dynamism and ability to adapt to market and institutional demands.

The Arab National Bank concluded the last decade by achieving qualitative milestones in the corporate sector, becoming one of the largest financiers of major projects in the Kingdom, especially in the fields of energy and infrastructure. It has also participated in public-private partnership programs and contributed to financing small and medium-sized enterprises, embodying its role as a driver of national economic development.

Arab National Bank places the corporate sector at the heart of its strategy, offering a wide range of banking and financial services specifically designed to meet diverse business requirements. These services include corporate current accounts that enable effective liquidity management, as well as cash management solutions that allow companies to optimize their cash flows and monitor daily spending through advanced electronic platforms. The bank also supports corporate operations through electronic collection and payment services that provide security and speed in transaction execution.

In terms of financing, Arab National Bank stands out by offering medium- and long-term corporate loans, which are dedicated to financing working capital, purchasing fixed assets, or executing new projects. The bank also provides international trade financing programs, which include letters of credit, guarantees, and export and import financing, enhancing the ability of Saudi companies to expand into foreign markets. Additionally, the bank offers real estate financing solutions for companies operating in the real estate development and construction sectors, under competitive terms and flexible repayment options.

The bank has not overlooked financial advisory services for companies, as its subsidiary, Arab National Investment Company, provides asset management, financial brokerage, and advisory services related to the issuance of stocks, bonds, and sukuk in the Saudi financial market. These services are essential for companies wishing to restructure their finances or plan for strategic expansion. The bank also offers Sharia-compliant financing programs, including profit-sharing and leasing, enabling companies to obtain legitimate financing solutions.

Arab National Bank excels in customizing products according to the needs of each company, whether it is a startup, a medium-sized enterprise, or a large institution. Its digital services enhance access to information and facilitate transactions at any time, contributing to improving internal work efficiency for companies and enhancing their competitiveness in the market.

Arab National Bank relies on a flexible administrative and organizational structure that keeps pace with market developments, granting it the ability to respond quickly to the demands of the corporate sector. The bank is managed by a board of directors comprising a selection of banking and financial experts, along with specialized committees that ensure effective governance and strict internal control. This is followed by an executive management team distributed across specialized business units, the most prominent of which are the corporate banking unit, institutional financing unit, risk management, and digital products management.

The corporate banking unit is responsible for developing relationships with institutional clients, preparing financing plans, and customizing banking products that meet the specific needs of each company. Meanwhile, the digital products management oversees the development of technological solutions that enhance customer experience and expedite daily operations. The risk management department works closely with business units to assess the creditworthiness of companies and ensure a balance between growth and financial solvency.

The bank's strategy in the corporate sector is based on building long-term relationships with large and medium-sized institutions, through the allocation of highly experienced relationship managers who oversee providing financial advice and leading negotiations regarding credit facilities. The bank also holds regular meetings with its corporate clients to review financial plans and provide innovative solutions that keep pace with market transformations.

Operationally, Arab National Bank invests in developing its technological infrastructure, focusing on automating processes and improving the efficiency of services provided. It places particular importance on cybersecurity, especially in light of rising digital risks, relying on modern systems to protect the data of companies and clients and maintain the confidentiality of transactions. All these factors combined enable the bank to provide corporate banking services characterized by flexibility, speed, and security, meeting the needs of companies in a competitive business environment.

Arab National Bank offers a comprehensive range of financing products directed at companies of various sizes and sectors. These products start from traditional medium- and long-term loans, which are typically used to finance working capital, expand fixed assets, or execute major investment projects. The bank enjoys flexibility in designing financing programs to suit each company, taking into account the nature of the sector, the project lifecycle, and the repayment timeframe.

To keep pace with developments in the corporate financing environment, Arab National Bank has introduced innovative financing products such as sukuk and bonds. In 2024, it launched an international program for issuing first-tier additional capital sukuk (AT1) in US dollars. These sukuk are a Sharia-compliant financing tool, typically used to enhance the bank's capital base, funding major corporate projects or restructuring debts. The bank also participates in arranging sukuk and bond issuances for companies wishing to raise financing from local or global markets through its investment subsidiary.

Additionally, the bank provides international trade financing solutions that include letters of credit and bank guarantees, which are essential for companies engaged in import and export. The bank is distinguished by its rapid processing of financing requests thanks to digital technologies, with the ability to customize repayment programs to align with each client's cash flows. The bank targets companies operating in vital sectors such as energy, infrastructure, housing, and construction, working to provide facilitated financing for projects linked to Vision 2030 initiatives.

With this comprehensive strategy, Arab National Bank enables Saudi companies to access diverse financing sources, enhancing their ability to grow and expand locally and internationally while maintaining financial solvency and operational sustainability.

Cash management is a fundamental element for the success of companies, and Arab National Bank has placed significant emphasis on this aspect by developing an advanced suite of digital and banking solutions. The cash management programs offered by the bank include integrated services that allow companies to monitor their balances and manage cash flows in real-time through advanced electronic platforms. Clients can obtain detailed reports on account movements, schedule payments, and set spending limits, contributing to enhancing financial control for companies.

In terms of collection, the bank offers electronic solutions for collecting payments from customers and suppliers securely and quickly, whether through point-of-sale systems, electronic payment gateways, or direct bank transfers. The bank also provides bulk payment services for salaries and suppliers, a feature that allows companies to execute mass payments through a unified electronic platform, ensuring compliance with regulatory standards and data protection.

The bank regularly updates its digital services, benefiting from technological advancements in the financial sector, having launched modern banking applications that meet the needs of large, medium, and small companies. These applications offer advanced capabilities such as remote approval of financial transactions and managing daily operations without the need to visit traditional branches. The bank has also integrated cash management systems with companies' internal accounting programs, facilitating reconciliation processes and periodic financial reporting.

The bank does not overlook the importance of cybersecurity in all these services, applying the highest standards of encryption and data protection to ensure the safety of transactions, which provides an additional element of reassurance for companies amid rising digital risks. With this suite of services, Arab National Bank contributes to enhancing the efficiency of companies and improving their ability to manage their financial resources effectively and transparently.

Islamic financing is one of the main pillars of Arab National Bank's strategy to meet the needs of the Saudi corporate sector, especially in light of the growing trend towards Sharia-compliant financial solutions. The bank offers a variety of Islamic financing products for companies, including profit-sharing financing, leasing, partnership, and participation, designed to suit the needs of institutions across various sectors.

Profit-sharing financing is one of the most sought-after products, where the bank purchases the goods or assets required by the company and then sells them to it at an agreed profit margin, providing repayment facilities that align with the client's cash flows. Meanwhile, leasing financing allows companies to rent productive assets or properties for a specified period, with the option to own the asset at the end of the contract. Partnership and participation structures are used to finance joint projects or new investments, where the bank participates in capital or profits as per the agreement.

Arab National Bank is keen to adhere to Sharia regulations through specialized Sharia committees that review products and ensure full compliance with legal rulings. The bank also offers advisory services for companies wishing to transition to Islamic financing and provides training and workshops for financial staff to ensure understanding of Sharia financing mechanisms.

The importance of Islamic financing in supporting the corporate sector is reflected in enhancing transparency, achieving financial sustainability, and reducing risks associated with traditional interest. This type of financing also allows Saudi companies to attract a wide range of investors and clients who prefer Sharia-compliant solutions. Under Vision 2030, Islamic financing has become one of the main tools to support major national projects, especially in housing, energy, and infrastructure sectors, where the bank leverages its long-standing expertise in this field to provide innovative solutions that support sustainable growth for companies.

Arab National Bank is a key partner in financing major projects that form a fundamental pillar for achieving the objectives of Saudi Vision 2030. With the government's direction towards diversifying income sources and developing strategic sectors such as housing, energy, tourism, and infrastructure, the bank has an exceptional role in providing the necessary financing for these national initiatives.

Through medium- and long-term financing programs, the bank has participated in financing numerous mega projects, such as government housing projects, renewable energy complexes, and major tourism projects like NEOM. The bank allocates specialized teams to study the feasibility of these projects, assess risks, and design innovative financing programs that align with the nature of the project and its investment lifecycle.

The bank also participates in public-private partnership (PPP) programs, which allow the private sector to contribute to the implementation of infrastructure projects in strategic partnerships with the government. In this context, the bank provides flexible financing solutions, including credit facilities, guarantees, and working capital financing, contributing to accelerating the pace of implementation and ensuring financing sustainability.

In addition to direct financing, the bank supports companies executing national projects by providing cash management services, electronic collection and payment, and financial advisory services, enhancing operational efficiency and speed of execution. The bank pays special attention to projects with social and economic impact, such as affordable housing projects and clean energy initiatives, aligning with the national direction towards sustainable development.

Financial data announced in 2024 and 2025 shows significant growth in the corporate financing portfolio, resulting from increased demand for financing for major projects, confirming the bank's position as one of the most important financial partners in achieving Vision 2030.

The financial indicators of Arab National Bank in recent years reflect strong performance in the corporate sector, supported by continuous growth in the financing portfolio and improved revenues. The bank's stock price at the end of 2024 was approximately 23.08 Saudi Riyals, while the market capitalization was estimated at around 46.2 billion Riyals, placing the bank among the largest financial institutions in the Kingdom. The bank's price-to-earnings (P/E) ratio ranged from 10 to 15 times, which is a stable and average rate compared to other Saudi banks, indicating market confidence in the bank's profitability and sustainability of its earnings.

In terms of cash distributions, the bank has maintained a stable dividend distribution policy, with cash distribution ratios ranging between 6% and 10% annually according to the stock price. The bank's general assembly announced in mid-2025 a distribution of interim dividends for the first half of the year, reflecting the bank's suitability and financial strength, ensuring regular periodic returns for shareholders.

Regarding corporate financing, the bank has seen notable activity in issuing capital instruments, having launched in 2024 an additional capital sukuk (AT1) program to enhance the capital base, in line with Basel III requirements. The bank also executed a share buyback program to support the stock price and rebalance the ownership structure, indicating effective capital management.

The financial results for the first half of 2025 showed growth in net profits driven by an increase in commercial loan volume and improved profit margins on financing. Additionally, a decrease in provisions for doubtful debts contributed to enhancing net income. These indicators reflect the bank's ability to adapt to market conditions and meet corporate needs while maintaining a balance between growth and financial risks.

Arab National Bank faces intense competition in the corporate sector from major banks such as National Commercial Bank, Al Rajhi Bank, Riyad Bank, and Banque Saudi Fransi, as these banks compete to provide advanced financing and management solutions for large companies and institutions. Nevertheless, Arab National Bank is distinguished by several strengths that make it a preferred choice for many Saudi companies.

One of these strengths is its specialization in providing customized solutions that suit the needs of each company, whether in traditional or Islamic financing. The bank is also characterized by its quick credit decision-making due to its flexible administrative structure, allowing companies to respond swiftly to investment opportunities. The bank's ability to arrange financing for major projects and issue sukuk and bonds is highlighted, as it has participated in financing many major national initiatives with governmental and private entities.

In terms of digital services, Arab National Bank has invested heavily in developing advanced electronic platforms for cash management and electronic collection, surpassing some of its competitors in many technical aspects. Cash management and electronic payment services are among the bank's key strengths, enabling companies to enhance their operational efficiency.

On the other hand, the bank faces challenges in dealing with the intensity of competition from banks with larger asset bases and greater capacity to price financing products. Other banks are also racing to develop innovative digital products and specialized advisory services. However, Arab National Bank maintains its competitiveness by focusing on quality, commitment to providing Sharia-compliant solutions, and leveraging its expertise in the corporate sector to support the continuity of long-term relationships with its clients.

Arab National Bank owns several subsidiaries that support its presence in the corporate sector and add value to its services directed at companies. At the forefront of these subsidiaries is the "Arab National Investment Company," which is the bank's arm specialized in providing investment banking services, asset management, financial advisory, and brokerage in the Saudi financial market. The company provides advanced solutions for issuing stocks, bonds, and sukuk, managing investment portfolios on behalf of large companies and institutions, granting the bank's clients diverse opportunities to grow their wealth and investments.

The bank also owns the "Arab National Bank for Global Markets Limited," a subsidiary based in the Cayman Islands, specializing in trading financial derivatives and providing hedging tools for companies against currency and interest rate risks. This company plays an important role in providing advanced products that help Saudi companies manage financial risks associated with global markets.

Additionally, the bank participates in affiliated or subsidiary companies operating in leasing finance, financial brokerage, and insurance services, enhancing the range of institutional solutions available to clients. These companies develop specialized financial products that meet the needs of the industrial, trade, and service sectors.

Arab National Bank is keen on integrating its services with those of its subsidiaries, linking clients to comprehensive advisory, financing, and investment solutions through a joint team. This integration serves as an attraction for companies seeking a banking partner capable of meeting all their requirements under one umbrella, ensuring the highest levels of governance and transparency in operations.

The corporate banking services sector at Arab National Bank has undergone a comprehensive digital transformation in recent years, aimed at meeting customer expectations and improving operational efficiency. The bank has invested significantly in developing advanced digital platforms that allow companies to manage their accounts, cash flows, and execute financial transactions in real-time and securely. These platforms include mobile applications, online banking portals, and integration solutions with companies' internal accounting systems.

Among the prominent digital applications launched by the bank is the electronic business portal that allows companies to manage payments and collections, approve transactions remotely, and schedule salaries and invoices in a fully automated manner. These tools enable companies to monitor cash flow reports, analyze expenses and revenues, and perform bank reconciliations without the need to visit traditional branches.

The bank has also integrated artificial intelligence and data analytics into its digital services, providing companies with advanced capabilities to forecast cash flows, assess risks, and make informed financial decisions. These technologies support internal governance processes by monitoring suspicious activities and ensuring compliance with regulatory policies.

In terms of cybersecurity, the bank applies the latest electronic protection standards, including advanced encryption, multi-factor authentication, and real-time monitoring systems for financial transactions. Investing in digitization is part of the bank's commitment to keeping pace with the trends of Vision 2030, which focuses on the digital transformation of the financial sector and enhancing the Kingdom's competitiveness as a regional financial hub. All these digital innovations have contributed to improving the experience of companies and significantly raising their operational efficiency.

Risk management and governance are fundamental pillars in Arab National Bank's strategy for corporate financing, especially in light of the changing economic environment and increasing regulatory challenges. The bank relies on a comprehensive risk management framework that includes assessing the creditworthiness of companies, analyzing cash flows, and monitoring clients' obligations periodically. The bank's risk management employs advanced analytical models to estimate the probability of default and repayment capacity, based on long banking experience and international standards such as Basel III.

The teams are committed to applying strict policies in granting financing, where projects are thoroughly examined, financial plans reviewed, and collateral evaluated. Risk policies are also regularly updated to keep pace with market developments and emerging risks, such as interest rate fluctuations, market risks, and legislative changes. The bank also allocates provisions for doubtful debts, enhancing its financial position and reducing the impact of potential defaults.

Regarding governance, the bank is managed according to internal and external regulatory frameworks that ensure transparency, integrity, and compliance with local and international regulations. The board of directors and its specialized committees oversee financing policies, review performance, and ensure a balance between achieving growth and maintaining the quality of the credit portfolio. The bank also relies on technological monitoring systems to detect unusual transactions, combat money laundering, and comply with disclosure and transparency requirements.

All these measures enable Arab National Bank to continue providing innovative financing solutions to the corporate sector while ensuring financial sustainability and reducing operational and credit risks, enhancing its position as a leading bank in the Saudi market.

Arab National Bank places special emphasis on its social responsibilities, integrating this concern into its strategy to support the small and medium enterprises (SMEs) sector. The bank recognizes that enhancing the growth of this sector is a cornerstone for achieving sustainable development and diversifying the economy, in line with the objectives of Vision 2030. To this end, the bank has launched several initiatives and financing programs aimed at empowering entrepreneurs and startups to obtain the necessary financing.

The bank offers tailored financing programs for small and medium enterprises, including working capital facilities, expansion loans, and equipment and asset financing programs. It also provides advisory and training services for business owners through workshops and awareness courses on risk management, financial planning, and digital marketing. These initiatives have enabled many companies to overcome operational and financial challenges and achieve sustainable growth in their activities.

In the broader context of social responsibility, Arab National Bank supports women's empowerment programs in business, participates in youth employment and training initiatives in the financial sector, and sponsors various environmental and community initiatives. The bank also collaborates with governmental and private entities to implement digital transformation initiatives, facilitating SMEs' access to digital banking services.

The results of these initiatives are reflected in the increasing percentage of financing for small and medium enterprises within the bank's portfolio, achieving a positive impact on the national economy by creating new job opportunities and stimulating innovation in the Saudi market. The bank continues to develop its social programs in line with international standards for corporate responsibility and sustainable development.

Recently, Arab National Bank has witnessed a series of significant developments and news that reflect the dynamism of its operations in the corporate sector. Among the most notable developments is the launch of the first-tier additional capital sukuk (AT1) issuance program in US dollars in 2024, which strengthened the bank's capital base and enabled it to meet the growing demand for corporate financing, especially for major projects linked to Vision 2030.

The bank also completed its share buyback program during the same period, announcing the successful completion of the operation, which aims to support the stock price and rebalance the ownership structure. This step is a clear indication of management's confidence in the bank's strong financial position and future expectations.

Regarding cash distributions, the bank announced in July 2025 the distribution of interim cash dividends to shareholders for the first half of the year, demonstrating the bank's commitment to a stable distribution policy and reflecting its solid financial position. The financial results for the first half of 2025 also showed growth in operating income and net profit, supported by the expansion of the financing portfolio and an increase in return on assets.

In the technical framework, the bank confirmed its continued investment in updating digital services directed at companies, with near plans to launch new applications and enhance the online customer experience. These initiatives align with the aspirations of the digital transformation of the Saudi financial sector.

These developments reflect Arab National Bank's ability to respond to market changes and meet corporate needs through advanced solutions, enhancing its competitiveness and maintaining a leading position in the Saudi banking sector.