Author : Muzammal Rahim

The Role of IFRS 9 in Saudi Arabia’s Financial Stability

Introduction Saudi Arabia’s financial sector is undergoing rapid transformation in line with Vision 2030, with the Saudi Central Bank (SAMA) prioritizing transparency, resilience, and global alignment. One of the key frameworks ensuring this stability is IFRS 9 – Financial Instruments, which governs classification, measurement, and impairment of financial assets. Its adoption is central to protecting […]

How to Prepare for IFRS 9 Audits in KSA

The introduction of IFRS 9 – Financial Instruments has transformed how organizations in Saudi Arabia recognize, measure, and report financial assets, liabilities, and credit risk. For banks, financial institutions, and corporates in the Kingdom, preparing for an IFRS 9 audit requires not only compliance with the accounting standard but also alignment with regulatory expectations set […]

How IFRS 9 Affects Retail Lending in KSA

The implementation of International Financial Reporting Standard 9 (IFRS 9) has significantly transformed the landscape of retail lending in Saudi Arabia. Effective from January 1, 2018, this standard introduced a forward-looking Expected Credit Loss (ECL) model, replacing the previous incurred loss approach. This shift has had profound implications for banks, borrowers, and the broader financial […]

ECL Modeling Challenges for Saudi Banks

Introduction Expected Credit Loss (ECL) modeling has become a critical component of financial risk management for banks worldwide, including those in Saudi Arabia. With the implementation of IFRS 9 accounting standards, Saudi banks are required to estimate credit losses more proactively, which demands robust ECL models. However, many Saudi banks face unique challenges in developing, […]

Comparison: IFRS 9 vs IAS 39

IFRS 9 and IAS 39 are both accounting rules. These rules help companies keep track of money they lend, borrow, or invest. But there are big differences between them. Old vs. New IFRS 9 was made to fix the problems in IAS 39. 1. How Money Items Are Grouped (Classification) IAS 39 IFRS 9 2. […]

Expected Credit Loss (ECL) Modeling Practices in GCC

Since the adoption of IFRS 9 across the Gulf Cooperation Council (GCC) countries, banks and financial institutions have transformed their approach to credit risk assessment by implementing Expected Credit Loss (ECL) models. Unlike the incurred loss model under IAS 39, IFRS 9 requires forward-looking ECL software estimation, compelling institutions to incorporate macroeconomic forecasts, credit deterioration […]

Regulatory Reporting under IFRS 9 in GCC Jurisdictions

IFRS 9, issued by the International Accounting Standards Board (IASB), has fundamentally transformed the way financial institutions measure and report credit risk. For banks and financial institutions in the Gulf Cooperation Council (GCC) — comprising Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman — regulatory reporting under IFRS 9 is not just a compliance requirement […]

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