AI Summary
Banks in Saudi Arabia charged the lowest interest rates on loans in the Gulf, according to a study conducted by Argaam Research.
The study— which covered banks in Saudi, Qatar, Kuwait, Oman and the United Arab Emirates— found that nine out of 15 banks that posted the lowest rates were based in the kingdom.
Saudi Investment Bank charged the lowest interest rate, which dropped to 3.17 percent in 2014 from 3.48 percent the previous year.
Qatar’s Al-Khalij Commercial Bank came second on the list with interest at 3.24 percent, followed by Saudi Samba Financial Group at 3.35 percent.
The interest rate is calculated by dividing bank fees and revenues charged on finance by the average size of loans extended by the included lenders in 2013 and 2014.
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Lowest Interest Rates on Loans in GCC |
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|
Change |
2014 |
2013 |
Country |
Bank |
|
(0.32.5) |
3.17% |
3.48% |
Saudi |
Saudi Investment Bank |
|
0.10% |
3.24% |
3.14% |
Qatar |
Al Khalij Commercial bank |
|
(0.27%) |
3.35% |
3.62% |
Saudi |
Samba Financial Group |
|
(0.26%) |
3.37% |
3.63% |
UAE |
National Bank of Abu Dhabi |
|
(0.03%) |
3.55% |
3.57% |
Saudi |
Banque Saudi Fransi |
|
(0.18%) |
3.66% |
3.84% |
Saudi |
Saudi British Bank |
|
(0.02%) |
3.79% |
3.80% |
Saudi |
Saudi Hollandi Bank |
|
0.02% |
3.85% |
3.83% |
Saudi |
Riyad Bank |
|
(0.17%) |
3.88% |
4.05% |
Saudi |
Arab National Bank |
|
(0.32%) |
3.90% |
4.23% |
Saudi |
Bank Aljazira |
|
(0.46%) |
3.93% |
4.39% |
Saudi |
Bank Al-Bilad |
|
(0.26%) |
4.23% |
4.49% |
Kuwait |
National Bank of Kuwait |
|
0.04% |
4.23% |
4.19% |
Qatar |
Masraf Al Rayan |
|
(0.27%) |
4.23% |
4.50% |
Kuwait |
Al Ahli Bank of Kuwait |
|
(0.49%) |
4.31% |
4.79% |
Qatar |
Ahli Bank |
As many as 12 banks in the UAE occupied the list of top 15 banks in the Gulf with the highest interest rate. RAKBANK charged an average 12 percent, the highest rate. Kuwait Finance House came second at 8.22 percent.
Argaam’s research covered 51 banks in the Gulf: 18 from the UAE, 12 from Saudi, nine from Kuwait, eight from Qatar, and four Oman-based.
Lenders that have not disclosed their detailed financial results for 2014 or are less than two years old were not included in the study.
|
Highest Interest Rates in GCC |
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|
Change |
2014 |
2013 |
Country |
Bank |
|
(0.37%) |
11.99% |
12.36% |
UAE |
National Bank Of Ras Al Khaimah- RAK BANK |
|
1.03% |
8.22% |
7.19% |
Kuwait |
Kuwait Finance House |
|
(0.38%) |
6.83% |
7.21% |
UAE |
Dubai Islamic Bank |
|
(0.50%) |
6.83% |
7.33% |
UAE |
Invest Bank |
|
0.09% |
6.80% |
6.70% |
UAE |
United Arab Bank |
|
0.31% |
6.71% |
6.40% |
UAE |
National Bank of Umm Al Qaiwain |
|
0.04% |
6.26% |
6.21% |
UAE |
Mashreq Bank |
|
(0.37%) |
6.09% |
6.46% |
UAE |
Abu Dhabi Islamic Bank |
|
(0.23%) |
5.93% |
6.15% |
UAE |
National Bank of Fujairah |
|
0.22% |
5.93% |
5.71% |
UAE |
Emirates Islamic Bank |
|
(0.13%) |
5.83% |
5.96% |
UAE |
Sharjah Islamic Bank |
|
(0.29%) |
5.64% |
5.93% |
UAE |
First Gulf Bank |
|
0.46% |
5.50% |
5.04% |
Kuwait |
Commercial Bank of Kuwait |
|
(0.40%) |
5.30% |
5.70% |
Oman |
National Bank of Oman |
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