Bank of Jordan KSA CEO: Saudi market central to our strategy

Zaher Maalla, CEO of Bank of Jordan's Saudi branch, said the bank's entry into the Saudi market is a cornerstone of the group's regional growth and expansion strategy, rather than simply a geographic presence.

Speaking to Argaam on the occasion of the branch's opening in the Kingdom, Maalla said the Saudi economy is a key regional hub, while the banking sector plays a vital role in supporting various industries, making the bank's presence in the Kingdom important from both a sustainability and long-term growth perspective.

Maalla said the branch's strategy is centered on building a sound and diversified portfolio of assets and financing across various sectors, while taking into account the characteristics of the local market and the needs of each customer segment.

He noted that business sector classifications, including small and medium-sized enterprises, vary from one market to another. Accordingly, the bank's strategy in the Kingdom has been designed to align with the characteristics of the Saudi economy and the requirements of the local market.

He said the portfolio will be built gradually under a strategic plan spanning the next three to five years, while taking into account liquidity, capital adequacy and leverage requirements. The priority, he added, is to build a sustainable business with long-term growth potential.

Commenting on competition in Saudi Arabia's banking sector, Maalla said the bank views the competitive environment as an opportunity rather than a challenge, as it encourages financial institutions to develop new products, innovate and offer more specialized solutions.

He added that the presence of a large number of domestic and foreign banks in the market strengthens competition, noting that banks' ability to differentiate themselves depends largely on how effectively they develop products and solutions tailored to customer needs.

Maalla said the branch's focus extends beyond capital size to include meeting the liquidity levels required by the Saudi Central Bank, while also complying with relevant international banking standards.

He added that the branch's requirements are aligned with Saudi Central Bank regulations as well as international standards, including International Financial Reporting Standard 9 (IFRS 9), Basel III requirements and capital adequacy standards.

On the licensing process and the opening of the branch, Maalla said the bank's experience with the Saudi Central Bank was characterized by support, guidance and clarity regarding regulatory requirements.

Drawing on his previous experience working with several central banks, he said understanding regulatory requirements from the early stages of expansion is a key factor in ensuring a financial institution's successful entry into a new market.

He added that the Saudi Central Bank's role extends beyond setting regulatory requirements and controls to providing support and guidance to financial institutions throughout the licensing and establishment process.

Maalla said the bank aims to use its presence in the Kingdom to strengthen links between the Saudi market and the markets in which the group operates, helping support trade, investment and clients' regional expansion.

He added that Bank of Jordan's strategy in the Kingdom is aligned with the objectives of Saudi Vision 2030 and priority economic sectors. The bank views its presence in Saudi Arabia as a base for expanding its regional operations and supporting trade and investment flows between the Kingdom and neighboring countries.

He said the bank is not focused on a single customer segment or only on traditional banking products, but is seeking to develop specialized banking solutions that meet the needs of different sectors of the economy.

Maalla said Bank of Jordan's nearly 65 years of experience supports its expansion plans in the Saudi market, stressing that the branch's strategy focuses on building the business gradually while maintaining portfolio quality and complying with liquidity, regulatory and capital adequacy requirements.