meed-logo

line1 line2 line3
SIGN IN / REGISTER

SNB loss exceeds $1bn over Credit Suisse turmoil

21 March 2023

Riyadh-based Saudi National Bank (SNB), the largest shareholder in Credit Suisse, has lost about 80 per cent of its investment after the troubled Swiss lender was bought out by UBS Group.

SNB, the kingdom’s largest lender by assets, acquired almost 9.9 per cent of Credit Suisse for SF1.4bn ($1.46bn) last November, at SF3.82 a share. Its loss now equates to nearly $1.2bn on its investment.

Under the terms of a wider state-backed rescue plan, Switzerland’s largest banking group UBS has agreed to buy its 167-year-old rival for $3.2bn, paying Credit Suisse shareholders SF0.76 a share – a 60 per cent discount.

Swiss authorities pushed for UBS to take over its rival after a plan for Credit Suisse to borrow up to $54bn from the country’s central bank failed to reassure investors and the bank’s customers.

Despite the loss, SNB has said its strategy remains unaffected.

"Changes in the valuation of SNB's investment in Credit Suisse have no impact on SNB's growth plans and forward-looking 2023 guidance," SNB said in a bourse filing.

SNB’s investment in Credit Suisse represented 0.5 per cent of the Saudi firm’s total assets and approximately 1.7 per cent of its investment portfolio.

The impact on SNB’s capital adequacy ratio from the mark-to-market decline in Credit Suisse is about 35 basis points after the UBS takeover.

SNB’s assets surpass SR945bn, however, which means that the bank has healthy capitalisation and liquidity, remaining above the prudential thresholds.

Middle Eastern investors

In total, Middle Eastern shareholders own about a fifth of the Swiss bank.

Fuelled by higher oil prices and an economic boom in the Gulf last year, while the rest of the world is slowing down, facing the rise of interest rates and trying to rein in inflation, the region's banks and sovereign wealth funds have been looking for opportunistic deals, and Credit Suisse emerged on the list.

The low price of shares seemed an attractive deal as Credit Suisse was classified as one of the world’s 30 systematically important banks. Unlike many of its peers, the bank survived the 2008 financial crisis without a bailout.

The lender has been facing problems for years, however, including multimillion-dollar losses and scandals arising from an alleged toxic work environment and changes in senior management. It has also struggled to control risk and make profits.

As a result, its stock value plummeted by more than 95 per cent from its pre-financial crisis peak. The fall continued and the stock lost 89.2 per cent during the last fiscal year.

Following a restructuring plan, the new Credit Suisse management raised $4bn in funding at the end of 2022 from investors including major Gulf banks and sovereign wealth funds, such as Saudi National Bank (almost 40 per cent owned by the Public Investment Fund), Qatar Investment Authority and Saudi Olayan Group. Norway’s sovereign wealth fund, Norges Bank Investment Management, is also a major shareholder in the bank.

In January, QIA increased its stake in Credit Suisse to 6.8 per cent, which makes it Credit Suisse's second-biggest shareholder. 

In February, the bank reported its biggest annual loss since the 2008 financial crisis.

MEED's April 2023 special report on Saudi Arabia includes:

> CONSTRUCTION: Saudi construction project ramp-up accelerates

> UPSTREAM: Aramco slated to escalate upstream spending

> DOWNSTREAM: Petchems ambitions define Saudi downstream

> POWER: Saudi Arabia reinvigorates power sector

> WATER: Saudi water begins next growth phase

> BANKING: Saudi banks bid to keep ahead of the pack

https://image.digitalinsightresearch.in/uploads/NewsArticle/10691672/main4830.jpg
Eva Levesque

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Read the November 2025 MEED Business Review

    30 October 2025

    Download / Subscribe / 14-day trial access

    The GCC is projected to add at least 80 million tonnes a year (t/y) of liquefied natural gas (LNG) capacity by 2030, placing it firmly among the world’s top three producing regions.

    With soaring global demand for the super-chilled fuel, and regional producers committing tens of billions of dollars to significantly ramp up output, MEED’s latest issue focuses on the outlook for the Gulf’s LNG sector as it enters a new, prolific phase. 

    Beyond the Gulf, MEED finds other regional countries also investing in building LNG import infrastructure, driven by a need to increase the share of gas in their energy mixes.

    This month’s market focus covers the UAE, where physical and digital infrastructure projects are building a connected economy of the future. The UAE is demonstrating, once again, that strategic investment remains the cornerstone of its national progress.

    MEED’s latest issue also includes a report on the Gulf's project finance market, which is continuing to attract strong interest from local and international lenders. Iraq, meanwhile, is revealed as the leader in non-GCC project finance activity.

    This issue is bursting with analysis. The team looks at Abu Dhabi’s latest move to position itself at the forefront of the global transition to low-carbon heavy industry; examines the way in which Riyadh-based Digital Cooperation Organisation is using data to define and measure the digital economy; and asks if Saudi Arabia’s housing boom is leaving its citizens behind.  

    MEED and Saudi Arabia’s National Centre for Privatisation & PPP also showcase the scale and variety of opportunities available in the kingdom’s $190bn pipeline of public‑private partnership projects.

    We hope our valued subscribers enjoy the November 2025 issue of MEED Business Review. 

     

    Must-read sections in the November 2025 issue of MEED Business Review include:

    > AGENDA: 
    > Gulf LNG sector enters a new prolific phase
    > Mena LNG infrastructure spending rises

    INDUSTRY REPORT:
    PROJECT FINANCE
    > Region sees evolving project finance demand
    > Iraq leads non-GCC project finance activity

    > PPPs: NCP showcases private sector project opportunities in Saudi Arabia

    > GREEN STEEL: Abu Dhabi takes the lead in green steel transition

    > DIGITISATION: Riyadh-based organisation drives digital growth

    > LEADERSHIP: Saudi Arabia’s housing boom risks leaving citizens behind

    > UAE MARKET REPORT: 
    > COMMENT: Investment shapes UAE growth story
    > GOVERNMENT: Public spending ties the UAE closer together
    > ECONOMY: UAE growth expansion beats expectations
    > BANKING: Stability is the watchword for UAE lenders
    > OIL & GAS: Adnoc strives to build long-term upstream potential
    > PETROCHEMICALS: Taziz fulfils Abu Dhabi’s chemical ambitions at pace
    > POWER: UAE power sector hits record $8.9bn in contracts
    > WATER: Tunnel projects set pace for UAE water sector
    > CONSTRUCTION: UAE construction faces delivery pressures
    > TRANSPORT: $70bn infrastructure schemes underpin UAE economic expansion
    > DATABANK:     UAE growth exceeds predictions

    > MEED COMMENTS: 
    >     Neom omitted from Saudi pre-budget statement
    > Qiddiya high-speed rail PPP is a bold but risky move
    > Wood leadership change holds promise for future
    > Power market reshapes contractor landscape

    > GULF PROJECTS INDEX: Gulf projects market leaders return to fore

    > SEPTEMBER 2025 CONTRACTS: Qatar leads awards as regional activity slows

    > ECONOMIC DATA: October 2025: Data drives regional projects

    > OPINION: Peace mission impossible

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14974210/main.gif
    MEED Editorial
  • Contractors submit UAE high-speed rail bids

    30 October 2025

     

    The UAE’s Etihad Rail received bids on 29 October from contractors for the tender to design and build the civil works and station packages for the high-speed railway (HSR) line connecting Abu Dhabi and Dubai.

    Earlier in October, MEED exclusively reported that contractors were forming joint ventures to bid for upcoming design-and-build work packages for the UAE’s high-speed railway project.

    MEED understands that the group formations for the civil works packages are as follows:

    • Limak / Dogus / Ozkar (Turkiye) – Dubai section
    • NPC / Trojan Tunnelling / Kalyon / China State (UAE/UAE/Turkiye/China) – Dubai and Abu Dhabi section
    • WeBuild / Tristar (Italy/UAE) – Abu Dhabi section
    • L&T / China Harbour / Hilalco / Wade Adams (India/China/local/local) – Dubai and Abu Dhabi
    • China Civil Engineering Construction Corporation (China) – Dubai and Abu Dhabi
    • China Railway Engineering Corporation (China) – Dubai section
    • China Railway Engineering Corporation / WBG (China/local) – Abu Dhabi

    French engineering firm Systra is the designer for the Limak-led consortium.

    US-based Jacobs is the designer for the NPC group.

    A joint venture of Systra and US-based Aecom is the designer for the WeBuild group.

    French engineering firm Egis and Singapore’s Surbana Jurong are the designers for the L&T-led consortium.

    Switzerland’s ARX is working with China Civil Engineering Construction Corporation as its designer.

    Chinese firm China Railway Eryuan Engineering Group is working with China Railway Engineering Corporation as its lead designer for both sections of the project.

    Teams are also forming for the systems package. These are:

    • Siemens / Rowad / Salcef (Germany/Egypt/Italy)
    • Hitachi / Orascom (Japan/Egypt)
    • Alstom / L&T (France/India)
    • CRRC (China)
    • Hyundai Rotem / Posco (South Korea)
    • Talgo / Hassan Allam (Spain/Egypt)
    • CAF (Spain)

    The design speed of the trains running on the UAE’s HSR network will be 350 kilometres an hour (km/h) and the operating speed will be 320km/h, as MEED reported last year.

    The proposed HSR programme will be constructed in four phases, gradually adding further connectivity to other areas within the UAE.

    The first phase involves constructing a railway line connecting Abu Dhabi and Dubai, which is expected to be operational by 2030.

    The second phase will develop an inner‑city railway network with 10 stations within the city of Abu Dhabi.

    The third phase of the railway network involves constructing a connection between Abu Dhabi and Al-Ain.

    The fourth phase involves developing an inter-emirate connection between Dubai and Sharjah.

    The 150km first phase of the HSR will stretch from the Al-Zahiyah area of Abu Dhabi to Al-Jaddaf in Dubai.

    The project’s civil works have been split into two packages – Abu Dhabi and Dubai – comprising four sections. The scope of these sections includes:

    • Phase 1A: Al-Zahiyah to Yas Island (23.5km) 
    • Phase 1B: Yas Island to the border of Abu Dhabi/Dubai (64.2km)
    • Phase 1C: Abu Dhabi/Dubai border to Al-Jaddaf (52.1km)
    • Phase 1D: Abu Dhabi airport delta junction and connection with Abu Dhabi airport station (9.2km)

    The rail line will have five stations: Al-Zahiyah (ADT), Saadiyat Island (ADS), Yas Island (YAS), Abu Dhabi International Airport (AUH) and Al-Jaddaf (DJD).

    The ADT, AUH and DJD stations will be underground, while ADS will be elevated and YAS will be at grade.

    The overall construction package also includes provisions for rolling stock, railway systems and two maintenance depots.

    The high-speed project will slash journey times between the UAE’s two largest cities and economic centres. The journey time between the YAS and DJD stations will be 30 minutes.

    Preliminary site testing works have begun. Dubai-based Matcon Testing Laboratory and Abu Dhabi’s Engineering & Research International are conducting drilling tests to ascertain the ground conditions in areas through which the HSR will pass. 

    Spanish engineering firms Sener and Ineco are the project’s engineering consultants.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14979930/main.jpg
    Yasir Iqbal
  • Kuwait Oil Company seeks approval to increase budgets

    30 October 2025

     

    State-owned upstream operator Kuwait Oil Company (KOC) is seeking approval from Kuwait Petroleum Corporation (KPC) to increase budgets for key projects, according to industry sources.

    Approvals are currently being sought for three upstream projects, which saw bids submitted significantly over budget.

    The first project, with a low bid of $2.47bn, involves the development of two facilities: Separation Gathering Centre 1 (SGC-1) and Water Injection Plant 1 (WIP-1).

    The second project, with a low bid of $2.48bn, focuses on developing SGC‑3 and WIP‑3.

    The third project, which involves the development of effluent water disposal plants for injector wells, had a low bid of $1.3bn.

    If approval is given by KPC, then final approval will be sought from the country’s Ministry of Finance, industry sources said.

    Already cancelled

    One Kuwaiti oil project tender that received bids significantly above budget has already been cancelled.

    On 7 October, MEED reported that the tender for the SGC-2 oil project – focused on the installation of a separation gathering centre – was cancelled by Kuwait’s Central Agency for Public Tenders.

    In May, MEED reported that UK-based engineering firm Petrofac submitted a bid more than double the project’s proposed budget.

    Petrofac’s bid was KD422.45m ($1.37bn), while the provisional budget stood at KD207m ($670.2m).

    This contract is expected to be retendered, but there is significant uncertainty over when a new invitation to bid will be issued and how the scope may be changed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14978340/main.png
    Wil Crisp
  • Nakheel launches Palm Jebel Ali residential buildings

    30 October 2025

    Dubai-based real estate developer Nakheel, now part of local developer Dubai Holding, has launched the Palm Central Private Residences on Palm Jebel Ali.

    The development will offer 212 residences, ranging from one- to five-bedroom apartments across three mid-rise buildings.

    The project will be located on Palm Jebel Ali's central spine between Frond M and Frond N.

    The latest launch follows the unveiling of Palm Jebel Ali’s Beach and Coral Collection villas, developed in collaboration with international architects.

    Nakheel released details of the new masterplan for Palm Jebel Ali in June 2023. Twice the size of Palm Jumeirah, Palm Jebel Ali will have 110 kilometres of shoreline and extensive green spaces. The development will feature more than 80 hotels and resorts, along with a range of entertainment and leisure facilities.

    It includes seven connected islands that will cater to approximately 35,000 families. The development also emphasises sustainability, with 30% of public facilities expected to be powered by renewable energy.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14972858/main.jpg
    Yasir Iqbal
  • Iraq awards Baghdad airport PPP deal

    29 October 2025

    Register for MEED’s 14-day trial access 

    Iraq has awarded a contract to develop Baghdad International airport on a public-private partnership (PPP) basis to a consortium comprising Luxembourg-based Corporacion America Airports (CAAP) and local firm Amwaj International.

    According to local media reports, the estimated $764m contract covers the rehabilitation of airport infrastructure, construction of a new passenger terminal, and operations and maintenance under a 25-year concession.

    In a statement on its website, the Ministry of Transport said the airport’s initial capacity is expected to be around 9 million passengers, gradually increasing to 15 million.

    Iraq’s Ministry of Transport and General Company for Airports & Air Navigation Services received the bids earlier this month, MEED reported.

    The bidding consortium included:

    • Asyad Holding / Top International Engineering Corporation / Lamar Holding / YDA Insaat / Dublin Airport Authority (Saudi Arabia/Saudi Arabia/Saudi Arabia/Turkiye/Ireland) 
    • Corporacion America Airports / Amwaj International (Luxembourg/Iraq)
    • ERG International / Terminal Yapi / ERG Insaat (UK/Turkiye/Turkiye)

    The media report added that the winning consortium offered the government 43.05% of total airport revenues.

    The Asyad-led consortium offered 38.05%.

    The ERG International-led consortium was disqualified from the bidding process.

    The International Finance Corporation (IFC), a member of the World Bank Group, is the project’s lead transaction adviser.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14971278/main.jpg
    Yasir Iqbal