Saudi banks see life after scandal

Saudi Arabia’s banks have had little reason to celebrate since May, when the central bank froze the accounts of Maan al Sanea, the chairman of Saad Group and one of the kingdom’s most influential businessmen.

That event triggered what has become the Middle East’s biggest financial scandal, while the intervening three months have shaken confidence in Saudi Arabia’s banking system as wary investors keep a tally of debt defaults from the Saad Group and Ahmad Hamad Al Gosaibi and Brothers.

The two family conglomerates are estimated to owe as much as US$20 billion (Dh73.46bn) to about 100 regional and international lenders.