Algosaibi saga stresses Gulf frailty

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When it emerged that a wholly-owned subsidiary of one of Saudi Arabia’s oldest and most respected family companies, the Algosaibi group, had defaulted Gulf bankers were astonished.

Their disbelief was compounded when it was revealed that the Saudi central bank had ordered banks in the kingdom to freeze personal accounts of Maan Al Sanea, another of the nation’s most powerful businessmen and the owner of the Saad Group.

Analysts are now warning the groups’ woes may have ramifications for other private companies in the Gulf, particularly if they are seeking to raise capital.