J.P. Morgan announces sale of stake in Saudi Investment Bank

J.P. Morgan International Finance Limited announced today it would begin the process of selling its stake in Saudi Investment Bank, a passive position the firm has

held since 1976.

J.P. Morgan International Finance Limited has held a legacy minority investment in Saudi Investment Bank for over 40 years and will divest its holding by selling shares back to Saudi Investment Bank. Today, the firm plays no role in the management of the Saudi Investment Bank and does not provide any technical services or maintain any board representation.

J.P. Morgan has large and growing local operations in the Kingdom. The firm is fully licensed in the Kingdom and provides commercial and investment banking services using its own franchise. The majority of the firm’s employees in the Kingdom are Saudi nationals, tapping into J.P. Morgan’s global network and resources to operate both a local commercial banking license through JPMorgan Chase Bank N.A.- Riyadh Branch and a securities license through J.P. Morgan (Saudi Arabia). 

J.P. Morgan is one of the largest international banks operating in the Kingdom, and the only U.S. bank providing both commercial banking and securities services. The firm began SAR cash clearing via SARIE in October 2016 and it is in the process of steadily increasing its local equities execution and custody capabilities.

“J.P. Morgan has had a deep relationship with the Kingdom of Saudi Arabia since 1934,” said Bader Alamoudi, senior country officer for J.P. Morgan. “We are excited and optimistic about the Kingdom’s economic prospects, the opportunities offered by Vision 2030 and our firm’s ability to support it.”

“Globally the firm has wound-down noncore holdings and projects over the past several years, and this proposed sale is consistent with that consolidation effort,” he continued. “We remain positive on the future growth of the Saudi banking industry on the back of government’s initiatives towards ensuring sustainable long term development of various sectors of the economy and financial markets. The strength of the banking regulatory framework is a key ingredient in shaping our view and we look forward to continuing playing an active role in the local Saudi market.”