Saudi Awwal Bank
A major Saudi commercial bank formed through the merger of Saudi British Bank and Alawwal Bank.
Last updated August 22, 2026
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Overview
Saudi Awwal Bank (SAB) is a Riyadh-based Saudi joint-stock commercial bank serving retail customers, businesses, institutions and high-net-worth clients. Its business covers personal banking, commercial and corporate banking, investment banking, private banking, wealth management and Sharia-compliant financial solutions. The institution is listed on the Saudi Exchange under ticker 1060.SR and is among Saudi Arabia's largest banks by deposits. The bank's institutional lineage reaches back to the British Bank of Iran and the Middle East, which opened branches in Jeddah and Khobar in 1950 and became the British Bank of the Middle East in 1952. HSBC acquired that bank in 1959. Changes in Saudi banking regulation during the 1970s required foreign banks to establish locally incorporated entities with substantial Saudi ownership. In response, HSBC's Saudi operations were reorganized in 1978 as Saudi Arab British Bank, commonly abbreviated SABB. The new structure gave Saudi shareholders a majority interest while HSBC retained a minority position and provided technical and international banking support. SABB's subsequent development combined a domestic Saudi banking franchise with access to HSBC's international network. This supported services connected with cross-border trade, multinational companies, treasury, investment banking and international payments, while the bank also expanded its local retail, business and Islamic-banking activities. HSBC's role has remained strategically important, although SAB is a Saudi listed company rather than a wholly owned HSBC subsidiary. A defining turning point came in May 2018, when SABB announced an agreement to acquire Alawwal Bank, formerly Saudi Hollandi Bank. The transaction followed a period of banking-sector consolidation and was associated with Saudi Arabia's Vision 2030 reforms and Financial Sector Development Program. The legal merger was completed on 16 June 2019, making the combined institution Saudi Arabia's third-largest bank by market capitalization according to the cited reference material. Alawwal Bank ceased to exist as a separate legal entity and was absorbed into SABB. SABB shareholders held 73% of the merged institution, and Lubna Olayan chaired the combined bank. The integration was planned to take approximately 18 months and was reported as completed in 2021. The combined organization retained the Saudi British Bank identity during the integration period and continued using branding associated with HSBC, including its hexagon symbol and typography. The bank subsequently adopted the Saudi Awwal Bank name represented by this entry. The name expresses its Saudi identity while preserving the institution's continuity as a major national banking group. SAB's service mix includes conventional and Islamic financial products. Its Islamic Financial Solutions are overseen by Saudi regulatory authorities and a Sharia supervisory committee, supporting products designed to comply with Islamic-finance principles. The bank also maintains an international footprint through its Saudi network and a branch in London, although its principal market and operating base are in Saudi Arabia. Public descriptions identify it as one of the country's five largest banks by deposits. Forbes Middle East ranked it 11th among its 30 Most Valuable Banks in 2025 and 21st among its Top 100 Listed Companies, as reported in the referenced encyclopedia material.
History
Saudi Awwal Bank's history combines the development of HSBC's former Saudi operations with the consolidation of two established Saudi banks. Its earliest cited predecessor was the British Bank of Iran and the Middle East, which opened branches in Jeddah and Khobar in 1950. The Jeddah operation benefited substantially from business associated with the Hajj pilgrimage. In 1952, the institution became the British Bank of the Middle East, and HSBC acquired it in 1959. Saudi banking policy changed significantly in the 1970s. In 1976, the central bank introduced a broad Saudization policy intended to reduce the dominance of foreign bank branches and increase Saudi participation in the financial system. Foreign banks were directed to incorporate locally, become Saudi companies with Saudi capital and limit their overseas parent ownership to 40 percent. HSBC consequently reorganized its Saudi business in 1978 as Saudi Arab British Bank, generally known as SABB. The structure was initially described as 60 percent Saudi-owned and 40 percent owned by HSBC, with HSBC also providing technical services. SABB operated as a listed Saudi bank with a combination of local banking activities and international capabilities linked to HSBC. Its activities developed across retail, commercial, corporate, investment, private and Islamic banking. The institution served Saudi consumers and companies while also supporting multinational businesses, trade and cross-border financial activity. HSBC's ownership position later changed; the referenced history states that HSBC Group acquired additional shares from SABB in October 2019 and became the major shareholder with 51 percent, although the bank remained a Saudi listed joint-stock company. The next major stage was the proposed combination with Alawwal Bank. On 16 May 2018, SABB and Alawwal, formerly Saudi Hollandi Bank, announced a non-binding agreement after nearly a year of negotiations. The transaction was part of a broader period of Saudi financial-sector reform associated with Vision 2030. The government had launched the Financial Sector Development Program shortly before the final merger agreement, with objectives that included strengthening financial institutions and developing the capital market. SABB was represented by Goldman Sachs in the transaction. The merger was legally completed on 16 June 2019. Alawwal ceased to exist as an independent legal entity and was absorbed into SABB. The combination was described in the reference material as Saudi Arabia's third-largest bank by market capitalization, with a market value of approximately US$17.2 billion at the time. SABB shareholders held 73 percent of the resulting bank, and Saudi businesswoman Lubna Olayan chaired the merged institution. Operational integration was expected to take around 18 months and was reported as completed in March 2021. During the integration period the organization retained the Saudi British Bank brand. The combined bank used visual elements associated with HSBC, including the familiar hexagon logo and related typography. The institution later adopted the Saudi Awwal Bank name, reflecting its identity as a Saudi banking group while retaining historical links to HSBC. Today, SAB is headquartered in Riyadh and operates primarily in Saudi Arabia, with more than 80 Saudi branches and a London branch cited in the reference material. It provides personal, business, corporate, investment, private and Islamic banking. Its Islamic Financial Solutions are subject to Saudi regulatory oversight and review by a Sharia supervisory committee. The bank is described as one of Saudi Arabia's five largest by deposits. The referenced material also records its appearances in Forbes Middle East's 2025 rankings, placing it 11th among the region's 30 Most Valuable Banks and 21st among the Top 100 Listed Companies.
- 2021
Merger integration completed
[1]The integration of Alawwal and SABB was reported as complete after approximately 18 months.
- 2019
Legal merger with Alawwal Bank
[1]The merger was completed on 16 June 2019, with Alawwal absorbed into SABB.
- 2018
Agreement to acquire Alawwal Bank
[1]SABB and Alawwal Bank announced a non-binding agreement that initiated their eventual merger.
- 1978
Saudi Arab British Bank is established
[1]HSBC's Saudi operations were incorporated as Saudi Arab British Bank, later known as SABB.
- 1976
Saudi banking Saudization policy introduced
[1]Saudi banking authorities directed foreign bank branches to incorporate locally and increase Saudi ownership.
- 1959
HSBC acquires the predecessor
[1]HSBC acquired the British Bank of the Middle East, linking the Saudi operations to the HSBC banking group.
- 1952
Predecessor becomes British Bank of the Middle East
[1]The predecessor institution changed its name to British Bank of the Middle East.
- 1950
Predecessor opens Saudi branches
[1]The British Bank of Iran and the Middle East opened branches in Jeddah and Khobar, establishing the earliest institutional roots cited for SAB.
Products and positioning
A large Saudi universal bank combining domestic retail and corporate capabilities with HSBC-linked international banking expertise, investment-banking resources and Islamic-finance services.
Retail banking
Personal Banking
SAB's personal-banking franchise serves individual customers through deposit accounts, everyday banking, cards and consumer-finance services. The range is designed for domestic Saudi customers and forms part of the bank's broader universal-banking model.
Business banking
Corporate and Commercial Banking
Corporate and commercial banking supports Saudi companies and institutions with lending, cash management, trade finance, treasury services and other working-capital or expansion requirements. The business also benefits from the bank's ability to connect local clients with international banking capabilities.
Investment banking
Investment Banking
The investment-banking business provides advisory, capital-markets and financing services for corporate and institutional clients. It complements SAB's commercial franchise and supports transactions requiring specialized financial structuring.
Wealth management
Private Banking and Wealth Management
Private banking and wealth-management services target affluent and high-net-worth customers. The offering sits alongside the bank's investment and international capabilities and is positioned for customers requiring more tailored financial planning and portfolio services.
Islamic banking
SAB Islamic Financial Solutions
SAB Islamic Financial Solutions comprises Sharia-compliant banking products and services. The activities are subject to Saudi regulatory oversight and review by a Sharia supervisory committee intended to ensure conformity with Islamic-finance principles.
Brand decisions
2021
Complete post-merger integrationStrategyBackground
The merger required the operational integration of the former SABB and Alawwal Bank businesses.
Action taken
The combined organization completed its integration program after approximately 18 months and continued using the Saudi British Bank identity during the integration period.
Aftermath
The unified bank retained HSBC-associated visual branding in the cited account and later operated under the Saudi Awwal Bank name.
2019
Complete legal merger with Alawwal BankM&ABackground
The proposed transaction was intended to combine SABB with Alawwal Bank, formerly Saudi Hollandi Bank.
Action taken
The legal merger was completed on 16 June 2019, and Alawwal Bank was absorbed into SABB as a separate legal entity.
Aftermath
The combined institution became one of Saudi Arabia's largest banks, with SABB shareholders holding 73 percent and Lubna Olayan serving as chair of the merged bank.
Reported market capitalization of the combined bank. US$17.2 billion (At the time of the 2019 merger)
2018
SABB agrees to pursue Alawwal Bank acquisitionM&ABackground
SABB and Alawwal Bank negotiated a combination during a period of Saudi financial-sector reform and banking consolidation connected with Vision 2030.
Action taken
The banks announced a non-binding agreement for SABB to acquire Alawwal Bank, with Goldman Sachs representing SABB in the transaction.
Aftermath
The agreement led to the legal merger completed in June 2019 and the creation of a larger combined Saudi bank.
Recent events
- 2025
SAB appears in Forbes Middle East banking and listed-company rankings[1]
Other
The referenced material reports that Saudi Awwal Bank ranked 11th in Forbes Middle East's 30 Most Valuable Banks and 21st in its Top 100 Listed Companies.
- 2021
Alawwal Bank and SABB integration completed[1]
M&A
The two banking operations were reported as fully integrated after an approximately 18-month program, with the combined organization continuing to use the Saudi British Bank identity during the integration period.
- 2019
Saudi British Bank and Alawwal Bank complete legal merger[1]
M&A · Leadership change
The legal merger was completed on 16 June 2019. Alawwal Bank was absorbed into SABB, creating a larger combined Saudi banking institution.
- 2018
SABB announces proposed acquisition of Alawwal Bank[1]
M&A
Saudi British Bank and Alawwal Bank entered into a non-binding agreement for SABB to acquire Alawwal, beginning the process that led to one of Saudi Arabia's major bank mergers.
Sources6 sources
- 1Saudi Awwal Banken.wikipedia.org
- 2Saudi Awwal Bank official websitesab.com
- 3SABB announces completion of merger with Alawwal Banksaudigazette.com.sa
- 4SABB appoints Tony Cripps as CEO, David Dew retiresargaam.com
- 5SABB unveils Saudi Arabia’s first Shariah green deposit amid sustainability pusharabnews.com
- 6SABB wins ‘Saudi Arabia’s Best Bank 2020’ awardarabnews.com
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