The Saudi Investment Bank (SAIB) is exiting its 50% ownership of American Express Saudi Arabia in a cash deal valued at USD 381.36 million (SAR 1.43B). This comes as the bank looks to strengthen its financial position and align its portfolio with its strategic direction.

The bank expects the deal to generate an estimated USD 211.14 million (SAR 792.4M) gain. Moreover, there will be a deferred amount representing the bank’s share in distributable profits from the signing of the transaction until completion of the share transfer.

Why You Should Care

SAIB’s exit marks a meaningful shift in how the bank is deploying capital. Rather than maintaining its position in a specialized payments and financing business, it is converting the investment into cash that can strengthen its balance sheet and support other strategic priorities.

For investors, the more important signal is what the sale says about SAIB’s capital allocation. The transaction gives the bank greater flexibility over where it puts its capital next, while also crystallizing significant value from an investment it has held for years.

The Details

SAIB signed the agreement with American Express Middle East to sell its entire 50% stake in American Express Saudi Arabia for approximately USD 381.36 million (SAR 1.43B).  

The main consideration will be paid in cash. Meanwhile, the additional deferred amount will be calculated under the shareholders’ agreement between SAIB and American Express Middle East. The agreement, which governs the ownership arrangement, was put in place on September 25, 2018.  The final value of the deferred consideration will depend on the distributable profits generated by American Express Saudi Arabia during the period leading up to completion.

SAIB said its investment in the company had a book value of around USD 170 million (SAR 637.70M) as of November 30, 2025. Using that figure, the bank expects the transaction to result in a gain of  USD 211.14 million (SAR 792.4M).

The Ripple

The transaction will transfer SAIB’s full ownership position to American Express Middle East, consolidating the latter’s ownership of the Saudi business.

For SAIB, the sale provides additional capital that can be deployed in line with its broader strategic priorities. The proceeds will be used to support and strengthen its financial position and serve the interests of the bank and its shareholders.

The transaction also highlights the value that can be unlocked from established financial services businesses as banks reassess their investment portfolios and capital allocation.

What to Watch

The immediate milestone is completion of the share transfer. SAIB said it will disclose material developments related to the transaction, including the completion date, in accordance with applicable regulations.

The final deferred purchase consideration will also be worth watching, as it will depend on the distributable profits generated by American Express Saudi Arabia before the transaction closes.