The Saudi Investment Bank (SAIB) has reached an agreement to divest its entire 50% stake in American Express Saudi Arabia to Amex Middle East for $381.4M (SAR 1.4B) in cash, alongside a deferred payment linked to profits accrued from the signing to the completion of the deal.
Full Ownership Becomes Official
This transaction, announced in a filing to the Saudi exchange, positions Amex Middle East as the sole shareholder of American Express Saudi Arabia, as it already owns the remaining 50%.
The agreement dissolves the joint venture (JV) established in September 2018.
SAIB Receives Deferred Payment
The pricing structure for the transaction adhered to a formula stipulated in the initial shareholders’ agreement. In addition to the upfront cash payment, SAIB will receive a deferred payment that reflects its portion of distributable profits generated by the company from the date of signing until the transfer of ownership.
The precise amount will be ascertained post-completion. The transaction awaits regulatory endorsement from pertinent Saudi authorities and includes standard warranties from both parties.
AMEX Saudi Arabia
American Express Saudi Arabia operates as a licensed closed joint stock company under the regulation of the Saudi Central Bank.
AMEX Saudi Arabia provides a range of financial services, including credit and charge card issuance, corporate payment solutions, and merchant acquiring for Amex products throughout Saudi Arabia.
The firm has demonstrated consistent revenue growth, with figures climbing from $135.3M (SAR 507.4M) in 2023 to an anticipated $171.8M(SAR 644.3M) in 2025. Net profit after zakat and tax is projected to rise from $23.5M(SAR 88.2M) in 2023 to $40.5M (SAR 151.97M) by 2025.
As of November 30, 2025, the book value of SAIB’s stake in the company was recorded at $170M (SAR 637.7M). The sale is expected to yield a gain of $211.3M (SAR 792.4M) for the bank. This financial benefit will be reflected in SAIB’s accounts following the completion of the transaction, with the deferred payment recognised independently upon receipt.
The bank indicated that the proceeds from the sale will be utilised to bolster its financial position in alignment with its strategic objectives, ultimately serving the best interests of its shareholders.
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