Crown Prince’s effort to lure banking giants pays off

The Kingdom of Saudi Arabia's flag

Germany-based Deutsche Bank AG is increasing its workforce in the Saudi capital, one of the few places worldwide where it does so, Bloomberg reported today, May 2.

The increasing trend of major international banks towards Saudi Arabia reflects the ongoing changes and campaigns to attract large companies, including banks, to the Kingdom, which started to bear fruit amid the emergence of Riyadh as a financial center.

Crown Prince Mohammed bin Salman has made it easier for foreign firms to operate by adopting a clear approach. The new companies law forced foreign companies to set up headquarters in the country or risk their business from government entities sitting on billions of dollars.

Several international banks have established regional headquarters in Riyadh. Rothschild & Co. recently opened its new office in King Abdullah Financial District in Riyadh. The levels of hiring in HSBC and JPMorgan Chase have also reached levels similar to Dubai, according to officials from both banks.

Meanwhile, Lazard chose Riyadh as the main base for its regional advisory business. Last year, the American financial services company Northern Trust Corp established its regional headquarters in Riyadh.

Bloomberg quoted May Nasrallah, founder and CEO of deNovo Corporate Advisors, which recently obtained a temporary license to establish its local operations, as saying that one can look at Saudi Arabia as a sleeping giant, finally awakening with a great deal of pent-up energy and striving hard to catch up with and surpass those around it.

She added that she believes Saudi Arabia will eventually bridge the gap between itself and other financial centers, but there are still some challenges.