Goldman Sachs said to be in talks for Saudi license

Goldman Sachs Group Inc. is holding preliminary discussions for an equities license in Saudi Arabia, Bloomberg reported, citing unnamed people familiar with the matter.

The US-based bank is yet to file a formal application, the people said, adding that no final decisions have been made.

The bank may also decide against going ahead with the submission, they said.

Goldman Sachs set up a dedicated Saudi Arabian business in 2008 after securing a license from the Capital Markets Authority, according to the bank’s website.

The lender is currently eligible to offer asset management services, along with advice on corporate finance transactions in the country. The new license would allow them to buy and sell Saudi Arabian equities as well.

Goldman Sachs’ move follows similar decisions by international financial institutions that aim to take advantage of Saudi Arabia’s economic reforms.

UK-based Ashmore Group Plc has already acquired a license to invest directly in the kingdom’s equities as Qualified Foreign Investors (QFIs), after the country opened to foreign investment in 2015.

Citigroup Inc. also won QFI approval in 2015, the report said.