SAIB to sell entire stake in American Express Saudi Arabia for SAR 1.43B

The Saudi Investment Bank (SAIB) has signed an agreement with American Express Middle East to sell its entire 50% stake in American Express Saudi Arabia for SAR 1.43 billion ($381.36 million), in addition to a deferred purchase consideration, in accordance with the shareholders’ agreement between the two parties.

In a statement on Tadawul, SAIB said the consideration will be paid in cash, in addition to a deferred amount representing the bank’s share of distributable profits generated by the company from the signing of the transaction until completion of the share transfer.

The bank added that the purchase consideration payable to it was determined in accordance with the formula set out in the shareholders’ agreement.

Under the shareholders’ agreement governing American Express Saudi Arabia, SAIB is also entitled to a deferred purchase consideration, which represents an additional portion of the consideration payable and reflects the bank’s share of the distributable profits generated by the company during the period from the transaction until completion of the share transfer.

The value of the deferred purchase consideration will be determined in accordance with the provisions of the shareholders’ agreement, which was enforced on Sept. 25, 2018.

The bank said the book value of its investment in American Express Saudi Arabia stood at SAR 637.70 million as of Nov. 30, 2025.

It expects the transaction to generate a gain of SAR 792.41 million, based on the book value as of Nov. 30, 2025. In addition, the bank will receive the deferred purchase consideration upon completion of the transaction.

The bank added that the related financial impact will be reflected in its financial statements for the relevant financial period following completion of the transaction.

SAIB said the sale proceeds will be used to support and strengthen its financial position, in line with its strategic direction and in the best interests of the bank and its shareholders.

American Express Saudi Arabia is a Saudi closed joint-stock company licensed by the Saudi Central Bank (SAMA) and headquartered in Riyadh. It operates as a specialized financing company engaged in issuing credit and charge cards, providing corporate payment solutions and American Express network services and products, and participating in the processing of commercial payments related to American Express cards and products in Saudi Arabia.

The bank said it will announce any material developments related to the transaction, including its completion date, in accordance with the applicable regulations and instructions.