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Choose anyone from the list and discuss.[200 words]1. How do you see the merger of NCB with SAMBA to create the Biggest Lender of Saudi Arab and the Third Biggest in GCC? Take a side (Favor/Oppose) and Discuss. [Or]2. Compare the Progress of Tadawul (Saudi Share market) with the share markets of Other GCC countries.https://www.saudiexchange.sa/wps/portal/saudiexcha…there is an example in the files attached
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I am in favor of the merger of NCB and Samba to create the biggest lender in Saudi Arabia
and the third biggest in GCC. The merger will create a stronger and more competitive bank
that will be better able to serve the needs of its customers and the Saudi economy.
The merger will have a number of benefits, including:
Increased scale and reach: The combined bank will have a larger customer base and a wider
network of branches. This will allow it to offer a wider range of products and services to its
customers.
Increased financial strength: The combined bank will have a stronger balance sheet and a
higher credit rating. This will make it more attractive to investors and will allow it to borrow
money at lower interest rates.
Increased efficiency: The merger will allow the combined bank to reduce costs and improve
efficiency. This will benefit its customers in the form of lower fees and better service.
The merger is also expected to have a positive impact on the Saudi economy. The combined
bank will be better able to support economic growth by providing loans to businesses and
individuals. It will also be able to play a role in developing the financial sector and attracting
foreign investment.
I believe that the benefits of the merger outweigh the risks. The merger is a positive
development for the Saudi banking sector and the Saudi economy.
some information about the potential benefits and drawbacks of the merger of NCB with
SAMBA to create the biggest lender in Saudi Arabia and the third biggest in the GCC.
Potential benefits of the merger include:
1. Increased market share: The merged entity would have a larger market share, which could
lead to increased profitability and competitiveness.
2. Diversification: The merger would allow the new entity to diversify its portfolio and
reduce risk.
3. Synergies: The two banks could benefit from synergies in terms of cost savings and
operational efficiencies.
4. Enhanced customer service: The merged entity could offer a wider range of products and
services to customers, which could improve customer satisfaction.
Potential drawbacks of the merger include:
1. Job losses: The merger could result in job losses as the two banks consolidate their
operations.
2. Cultural differences: The two banks have different cultures and ways of doing business,
which could lead to conflicts and challenges in integrating their operations.
3. Regulatory hurdles: The merger would need to be approved by regulatory authorities,
which could delay or even prevent the deal from going through.
4. Concentration of power: The merged entity would have a significant amount of power in
the banking sector, which could raise concerns about competition and market dominance.
In conclusion, whether the merger of NCB with SAMBA is favorable or opposed depends on
various factors, including the potential benefits and drawbacks mentioned above and other
considerations such as regulatory approval and market conditions.
Another Solution
How do you see the merger of NCB with SAMBA to create the Biggest Lender of Saudi Arab
and the Third Biggest in GCC? Take a side (Favor Oppose) and discuss. [4marks]
The merger of NCB and SAMBA is a significant development in the banking industry of
Saudi Arabia. The combined entity will have a total asset base of around SAR 837 billion
(USD 223 billion) and a market capitalization of around SAR 115 billion (USD 31 billion).
This will make it the largest bank in Saudi Arabia and the third-largest in the GCC region
after Qatar National Bank and First Abu Dhabi Bank.
Proponents of the merger argue that it will create a stronger and more competitive bank that
can better serve its customers. The merged entity will have a wider range of products and
services, greater financial strength, and improved operational efficiency. It will also be better
positioned to compete with international banks operating in Saudi Arabia.
Opponents, on the other hand, may argue that such mergers can lead to job losses, reduced
competition, and higher fees for customers. They may also express concerns about potential
conflicts of interest between shareholders and management.
Overall, it is too early to determine whether this merger will be successful or not. However,
if executed properly, it could bring significant benefits to both banks’ shareholders,
employees, and customers.
Reference:
Aljazira Capital. (2021). NCB-SAMBA Merger: Creating Saudi Arabia’s Largest Bank.
Retrieved from https://www.aljaziracapital.com.sa/en/insights/ncb-samba-merger-creatingsaudi-arabias-largest-bank/
Choose anyone from the list and discuss.
[200 words]
A. How do you see the merger of NCB with SAMBA to
create the Biggest Lender of Saudi Arab
and the Third Biggest in GCC? Take a side
(Favor/Oppose) and Discuss.
[Or]
B. Compare the Progress of Tadawul (Saudi Share
market) with the share markets of Other GCC
countries.
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