JPMorgan plans to expand services, staff in Saudi Arabia

US-based JPMorgan Chase plans to hire staff and offer new services in Saudi Arabia ahead of the Kingdom's proposed inclusion in the MSCI and FTSE emerging market indexes, The National reported, citing Sjoerd Leenart, regional chief and global head of corporate banking.

The inclusion in the emerging market indexes will lead to increased foreign investment flows into local equities, he added.

"The changes that Saudi is doing to its equity capital market, both in CMA regulation and Tadawul are very impressive and aiming to give unfettered access to foreign investors," Leenart said, adding, "That's why we built a custody business that can service our international clients that want to invest there."

The largest US lender by assets will begin operations of its custodian business, which involves holding securities on behalf of their owners, from next quarter. The service will be offered to international investors and local institutional clients.

JPMorgan started its equities business last year and currently employs 70 people in the Kingdom, the report said.

International banks are increasingly looking to shore up presence in Saudi Arabia, as the Kingdom undertakes a series of reforms to diversify its economy and privatize state-owned assets.

A key draw for foreign lenders is the planned listing of a 5 percent stake in oil giant Saudi Aramco, expected to raise $100 billion in what could be the world’s largest initial public offering (IPO).