British bank Barclays is planning to re-establish its operations in Saudi Arabia, 11 years after it wrapped up operations in the country.
Bloomberg reported that Barclays is in the process of securing a license to conduct investment banking activities in the country and plans to open an office in Riyadh next year as part of that push.
Barclays follows in the footsteps of JPMorgan Chase and Goldman Sachs Group, who have recently made a move to the Kingdom.
Chief Executive Officer CS Venkatakrishnan, who was in Riyadh to attend the Future Investment Initiative summit, told Bloomberg TV: “We are establishing our regional headquarters, we are in the process of getting all the appropriate banking and other licenses.
“The office will be in the financial district and we’re getting enough to have a good-sized office. We will build it up as we get the licenses.
“We are there to provide the connection with the rest of the world, bring in direct investment and liquidity. Investment flows used to head out of the region into Europe and the US, and now there’s a lot coming back. I think that’s the part where we can help.”
Meanwhile, Reuters quoted Investment Minister Khaled al-Falih that Saudi Arabia plans to recognise Barclays’ regional headquarters in a “couple of days”.
Al-Falih said: “If I may break that news, we will be recognising Barclays for the regional headquarters in a couple of days, and I’d like to thank you for that word of confidence into the kingdom as a platform.”
Barclays pulled out of the country more than a decade ago under then CEO Antony Jenkins, who sought to rein in the global ambitions of the company’s investment bank in the aftermath of the financial crisis. Barclays Saudi Arabia cancelled its license in 2014.
Bloomberg, quoting a source with knowledge of the matter, also said that the bank has hired Mohammed Abdulaziz AlSarhan, the chairman of local shipping and logistics company Bahri, to help lead the effort.
The bank this year elevated two senior leaders, Khaled El Dabag and Walid Mezher, to oversee its growing business in the Middle East. They continue to be based in Dubai but now report to Stephen Dainton, head of investment bank management.
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