Bank of New York Mellon (BK.N) announced on Thursday that it “has received a licence to set up a regional headquarters in Saudi Arabia.” This move aligns them with other companies attracted by incentives as the kingdom aims to become a more appealing financial hub.
Riyadh is actively working to attract companies to establish regional headquarters within the kingdom. They are offering tax breaks as Crown Prince Mohammed bin Salman seeks to diversify the economy by attracting foreign investment to “wean the economy off oil.”
Saudi Arabia’s new regulations require foreign firms “to have regional headquarters in the kingdom before they can access lucrative government contracts.”
Goldman Sachs (GS.N) secured a license to establish their regional headquarters in Riyadh in May 2024. Citigroup (C.N) obtained similar approval late last year.
The Middle East has become a vital growth market for global banks such as BNY. This growth is fueled by increased sovereign wealth fund activity, extensive infrastructure investments, and expanding capital markets throughout the Gulf.
Regional economies are diversifying beyond oil and attracting foreign capital through reforms and regulatory upgrades. Consequently, international financial institutions are expanding their presence to capitalize on new business prospects in asset servicing, custody, and advisory roles.
BNY stated that its new regional headquarters in Riyadh “will offer strategic, administrative and corporate support for BNY’s operations across the Middle East.”
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