Will Saudi Banking M&A Consolidation Spark Another Mega-merger After SABB-alawwal?

Saudi banking M&A consolidation became a real topic again when Saudi British Bank (SABB) agreed to acquire Alawwal Bank. The intention was announced in May 2018, and it was described as the first merger in the Saudi banking sector in twenty years. The legal merger was completed on June 16, 2019, creating one legal entity that later adopted the name Saudi Awwal Bank (SAB). For many readers, the key question now is simple: will another deal of similar scale happen again?

The SABB-Alawwal transaction is often treated as a reference point because it created a much larger combined bank. One source describes the result as Saudi Arabia’s third largest bank, with a market cap of $17.2 billion at the time of the deal. Another source says that, as of August 2025, SAB had a market capitalization of approximately $17.74 billion USD. These figures do not predict the future, but they show why size and scale are central themes in any discussion about another mega-merger.

Here are three concrete data points that show how SAB’s reported market capitalization is presented across sources: $17.2 billion (post-merger figure cited in connection with the 2019 deal), and approximately $17.74 billion (as of August 2025). A third closely related value appears in the same merger context: SAB was formed as the new bank after the deal, with SABB shareholders owning 73% of the new bank.

What The SABB-Alawwal Deal Signals About Future Consolidation

One reason this merger matters is timing. Sources link the May 2018 announcement to Vision 2030 economic reforms, suggesting that policy direction can influence consolidation cycles. Another signal is that mergers can change what happens to listed companies. A Saudi Arabia M&A guide notes that transactions including SABB-Alawwal and NCB-Samba show that changes of control in listed companies have been affected under the MARs, resulting in the delisting of the target.

Ownership structure is another practical factor that can shape any future mega-merger. In the past, Saudi policy limited foreign parent companies to 40% ownership of new entities, which led to SABB being structured with 60% Saudi ownership and 40% HSBC, plus a technical services agreement. Later, HSBC Holdings of Britain held a 49% stake in a joint venture arrangement until October 2019, when HSBC Group acquired shares to become the major shareholder with a 51% stake. These details show that control, not just size, is a core issue.

Finally, scale is not only about market cap. SAB is described as one of the five largest Saudi banks by deposits and has over eighty branches across Saudi Arabia, plus one branch in London, England. It was ranked 11th on Forbes Middle East’s 30 Most Valuable Banks 2025 list, and 21st on Forbes Middle East’s Top 100 Listed Companies list. If another mega-merger is discussed, these kinds of rankings and footprint details will likely be used to frame whether the combined entity is “big enough” to justify the complexity.