Saudi banks were buffeted by the financial crisis, the fallout from the Saad and Al Gosaibi crisis, Dubai World’s default and now the geopolitical shocks radiating throughout the region. 2011 may prove another testing year for the kingdom’s banks.

These are testing times for Saudi Arabia’s financial institutions. The sector has only just emerged from one of the more volatile financial periods of recent times. In 2009, the global credit crunch forced domestic banks to radically reign in their activities. Then the Saad and Al Gosaibi crisis undermined confidence in the sector even further as financial institutions quickly reassessed the viability of their loan portfolios to family-owned conglomerates. Not long afterwards, the Dubai World default further shook Saudi lenders as they scrambled to consolidate their positions. Full story