SAIB sells Amex Saudi stake at 2x book value

SAIB is taking the money and leaving the cards business: The Saudi Investment Bank (SAIB) is selling its 50% stake in American Express Saudi Arabia to its JV partner, Amex Middle East, for SAR 1.43 bn (USD 381.4 mn) upfront, plus deferred consideration, and is exiting the venture entirely, according to a Tadawul disclosure.

The price is more than double the stake’s SAR 637.7 mn book value as of November 2025, and SAIB expects to book a gain of roughly SAR 792.4 mn. Completion is subject to regulatory approval.

SAIB is cashing out of a steady earner at a premium. American Express Saudi Arabia, a Sama-licensed issuer of credit and charge cards and corporate payment products, posted revenue of SAR 644.3 mn and net income of SAR 152 mn in 2025, with net income climbing steadily from SAR 150.5 mn in 2024 and SAR 88.2 mn in 2023. Under the shareholders' agreement, SAIB will also collect a deferred payment reflecting its share of distributable net income through completion.

SAIB is exiting card issuance as the economics tighten. Sama’s 2025 reforms capped credit-card fees — international transaction charges at 2% and withdrawals at 3% — are putting pressure on issuer margins just as Saudi Arabia’s cashless shift accelerates. Electronic payments accounted for 85% of retail transactions at the end of 2025, while POS terminals topped 2 mn in 2024 (pdf). It’s a growing but increasingly competitive and regulated market. Making a 2x-book-value exit allows SAIB to capture the upside now rather than defend a minority position in a crowded field.

What SAIB does next is the question. The bank said the proceeds will strengthen its financial position in line with its strategic direction, without providing details. A gain this size on a mid-sized lender's balance sheet gives it real room to redeploy into core banking or return capital.