November 23, 2017 / 11:00 AM / a year ago

Qatar National Bank's link-up to Saudi payment network delayed - sources

DUBAI, Nov 23 (Reuters) - Qatar National Bank (QNB), the largest bank in the Middle East and Africa, has put on hold plans to connect to Saudi Arabia’s interbank payment network, as a regional political rift disrupts its growth plans in the kingdom, sources familiar with the matter said.

In May, the lender opened a branch in Riyadh, its first in the kingdom, offering retail and corporate banking services.

But while the branch is operational, QNB has not yet completed steps to connect to the Saudi Arabian Riyal Interbank Express (SARIE) system, which allows commercial banks in the kingdom to make and settle payments in riyals and is an important step for lenders operating there, the sources said.

They said the delay was prompted by the political rift, which led to Saudi Arabia, United Arab Emirates, Bahrain and Egypt on June 5 suspending diplomatic and transport ties with Qatar.

In a statement, a QNB spokesperson said its operations in Saudi Arabia were operating as normal.

“The Kingdom of Saudi Arabia continues to be a strategic market for QNB and we still envisages that in the future the Kingdom of Saudi Arabia will be a significant opportunity for growth,” it said.

Saudi Arabia’s central bank, which is in charge of operating SARIE, did not respond to a Reuters request for comment. (Reporting by Tom Arnold; Editing by Mark Potter)

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