Arab Bank Announces 30% Cash Dividends for Shareholders as Global Economy Faces Challenges in 2023

During a meeting of Arab Bank’s Board of Directors, it was decided to distribute cash dividends to shareholders at a rate of 30% for the year 2023. This decision was in addition to the approval of other items on the agenda. The meeting took place during an ordinary general assembly meeting of Arab Bank shareholders, and was chaired by Sobeih Al-Masry, the Chairman of the Board of Directors.

The challenges faced by the global economy in 2023 were highlighted during the meeting, including a decline in growth rates in many regions due to strict monetary policies aimed at combating high inflation. Despite these challenges, strong consumer spending in the United States contributed to offsetting some of the negative impacts on economic sectors. The global economy also experienced a decline in trade, investment, and credit demand, as well as a decrease in global inflation rates. Geopolitical tensions further added pressure on global and regional economies.

In the Arab region, non-oil sectors in oil-producing countries continued to show strong growth, supported by economic reforms and public spending. Oil-importing countries also saw moderate growth rates as a result of structural reforms. The current account deficit in oil-importing Arab countries improved due to a decrease in trade deficits and an increase in tourism revenues and workers’ remittances.

Banks in the Arab region adopted flexible policies towards customers in response to rising interest rates, helping individuals and companies navigate economic challenges. Banks maintained high levels of capital adequacy, liquidity, and profitability while also embracing digital solutions and financial technology to meet the evolving needs of customers, particularly the youth demographic. Despite these challenges, banks exhibited resilience in the face of economic difficulties and positioned themselves for future growth opportunities.