The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Gulf banking: Shake-up for GIB’s shareholders after bailout

Gulf International Bank is finalizing a reallocation of shares in the light of a $4.8 billion bailout by its shareholders.

The bank’s chief executive, Yahya Alyahya, tells Euromoney the new structure will be announced in the next two months.

Shareholders of GIB, which are the six governments of the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE), bought $4.8 billion of international securities from the bank, including its entire CDO and ABS portfolio in late March.

"The shareholders have agreed on a reallocation of shares between those who do not participate in the purchase and those who do," says Alyahya.

After a $1 billion capital injection in February 2008, the Saudi government became the bank’s majority shareholder. The Saudi Arabian Monetary Agency’s stake rose from 27.5% to 37.6% while the Saudi Public Investment Fund’s stake rose from 12% to 16.5%.

"It is expected as a result of the sale of assets that the structure will change further," says Alyahya. "The board of directors had been engaged in an evaluation exercise. Afterwards the shareholders themselves made an agreement. We are now in the process of documentation. There are some regulatory requirements to satisfy in order to finalize the share reallocation."

GIB does not have a retail network but Alyahya, who became chief executive on January 1, says the bank plans to grow in that area, although on a gradual basis.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree