Al Rajhi Bank, the largest provider of Islamic retail products in Saudi Arabia, is set to expand its business by focusing on lending to medium-sized companies, say analysts.
That niche "remains a relatively untapped market in Saudi Arabia", said Faisal al Azmeh, a banking analyst at NCB Capital in Riyadh. "The government's increasing efforts to develop the non-oil sector could further boost demand for corporate credit." NCB Capital initiated coverage on Al Rajhi with an outperform rating and price target of 88.7riyals a share, up almost 20 per cent from its current trading position.
Shares lost 0.3 per cent to 77.5 riyals yesterday.
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