With the global price of crude oil down markedly since 2014, Saudi Arabia, which is heavily reliant on oil revenues, has found itself forced to deal with a new and harsher economic reality, consisting of lower governmental income and an even more pressing need for economic diversification.
The country's banks have found themselves facing a challenging climate, as government deposits have been withdrawn to fund the budget deficit while private sector deposits have stuttered. Banks have seen their liquidity squeezed and this, along with other issues, has curtailed their ability to lend and hit their bottom lines.
