The financial difficulties of the Algosaibis, one of Saudi Arabia’s richest families and one of the country’s most prominent billionaires, sent bank shares tumbling across the region.

Saudi banking stocks have shed 12.5 per cent since June 1, when Maan al-Sanea’s Saad Group first admitted that it planned to restructure its debts, outpacing the 9 per cent decline of the Saudi stock market. Samba Financial Group has lost nearly a fifth of its value since early June.