BRICS: Saudi Arabia Banks Hit Record-Breaking Profits

Jaxon Gaines
saudi arabia kingdom prince mbs
Source: Bandar Algaloud / Getty

Perspective BRICS member Saudi Arabia has hit a new milestone in its banking sector, with the Saudi National Bank reporting a 14-month high in profits. The Central Bank of Saudi Arabia reports that in May, the total earnings of Saudi banks hit a record-breaking 14-month high of $1.96 billion. Cumulatively, from the beginning of the year to the end of May, banks recorded a total profit of SR34.78 billion, according to Arab News.

The banks’ profit before taxes and zakat (a saving tax of 2.5 percent to be distributed to poor and needy Muslims) increased by 9 percent in comparison to April 2024. The nation has experienced favorable growth this year since first showing interest in BRICS. Since it is one of the largest oil distributors in the world, the entire BRICS bloc has reaped the benefits, and also invested in the Middle-Eastern country.

Saudi Arabia’s decision to not renew the petrodollar agreement may prove detrimental to the US, but the Arabs seem to be unfazed by the idea. In fact, Saudi Arabia has seemingly swapped out the US with BRICS in trade, looking to ditch the US Dollar. Despite this mission, the Central Bank has seen record-breaking profits and isn’t looking to slow down.

saudi arabia kingdom flag country brics
Source: Twitter

Also Read: BRICS: India and Russia Meet to Discuss De-Dollarization

Saudi Arabia’s non-oil exports have risen by nearly 12.4% in April 2024. Saudi Arabia’s non-oil exports consisted of commodities such as rubber and plastic. The set further included chemical products, vehicles, aircraft vessels, machinery, and mechanical appliances, among other significant export items.

All eyes are now on Saudi Arabia and its decision to join BRICS. If the Kingdom becomes a part of the alliance, the oil and gas industry will experience a drastic change that favors developing countries.