Barclays Resumes Operations in Saudi Arabia After 10-Year Absence

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Barclays Plc is re-entering Saudi Arabia after more than a decade, joining other global lenders expanding in one of the Middle East’s most active financial markets. The bank is in the process of obtaining a license to conduct investment banking operations and plans to open an office in Riyadh next year as part of its renewed regional focus.

Chief Executive Officer C.S. Venkatakrishnan confirmed the development during an interview with Bloomberg TV at the Future Investment Initiative summit in Riyadh.

“We are establishing our regional headquarters, we are in the process of getting all the appropriate banking and other licenses,” he said. “The office will be in the financial district…and we will build it up as we get the licenses.”

Barclays return to Saudi Arabia comes a decade after it withdrew from the market. The bank had canceled its license to conduct securities business in 2014, under then-CEO Antony Jenkins, who scaled back the company’s global investment banking activities following the 2008 financial crisis.

At the time, international lenders struggled to compete with strong local rivals, prompting many to reduce their operations.

Now, Barclays is among several global banks eyeing opportunities in the kingdom, which is undergoing rapid economic transformation under Vision 2030.

Saudi Arabia is investing heavily in technology, gaming, and manufacturing as it works to diversify its economy beyond oil. The renewed interest from international firms comes as authorities encourage multinational corporations to set up their regional headquarters in Riyadh.

Venkatakrishnan said Barclays aims to support these developments by connecting Saudi businesses and investors with global markets. “We are there to provide the connection with the rest of the world, bring in direct investment and liquidity,” he said.

To lead its local operations, Barclays has reportedly brought on board Mohammed Abdulaziz AlSarhan, chairman of the Saudi logistics and shipping company Bahri.

Barclays joins giant banks in Saudi Arabia such as JPMorgan Chase & Co. and Goldman Sachs Group Inc., which have also strengthened their local presence in recent years.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.