Argaam Weekend | Basel III

Basel III

13^thDecember 2025

● Saudi Banking Sector CAR: Basel III Requirements vs. Practical Performance
● Rising Childcare Expenses: Implications for Family Budgets and Workforce Participation in the Arabian Gulf and Middle East
● How Saudi Arabia rethinks its investment in defence industry
● Could Saudi Arabia’s permanent residents take the pension system from B to A?

Topics of the Week

Saudi Banking Sector CAR: Basel III Requirements vs. Practical Performance

By the end of Q3 2025, the Saudi banking sector reflects strong capitalization levels, with the average total capital adequacy ratio reaching 20.04% compared to the regulatory minimum of 8% under Basel III requirements. These levels were supported by higher operating profits, improved asset quality, and a decline in non-performing loans, in addition to the Saudi Central Bank’s conservative supervisory policies.

Rising Childcare Expenses: Implications for Family Budgets and Workforce Participation in the Arabian Gulf and Middle East

Rising nursery costs burden Gulf families, forcing mothers out of full-time work and impacting GDP ("motherhood penalty"). Saudi Arabia's unique financial support program in the region aims to address this challenge.

How Saudi Arabia rethinks its investment in defence industry

"You cannot buy software in the same way you purchase a military aircraft carrier”.
This saying encapsulates the profound transformation in Saudi investment in the defense industries, as the latest defense technologies are increasingly derived from innovative minds and startups capable of reshaping the industry, rather than from giant corporations

Could Saudi Arabia’s permanent residents take the pension system from B to A?

We present a new proposal to adopt mandatory monthly contributions to the state pension fund from foreigners who obtain Premium Residency in the Kingdom of Saudi Arabia. Adding a contribution rate of 21.5% (9.75% from employees and 11.75% from employers) would provide an additional and sustainable financial source for the General Organization for Social Insurance, which serves as a key pillar of the Saudi economy.