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Barclays PLC is planning to restart investment banking in Saudi Arabia more than a decade after pulling back from the oil-rich region. The London-based bank said the expansion was ‘central to our Middle East growth strategy’, as it follows in the footsteps of rival lenders re-entering the market. It is set to open an office in Riyadh, Saudi Arabia’s capital, next year. Barclays’ chief executive CS Venkatakrishnan, known within the bank as Venkat, told Bloomberg TV that it wanted to have a ‘good-sized office’ in the city’s financial district. Barclays said it had secured a provisional licence which, once fully active, will pave the way for it to kickstart investment banking and global markets activity in the region. The move comes 11 years after the bank cancelled its licence to conduct its securities business in Saudi Arabia. At the time, former boss Antony Jenkins was overseeing thousands of job cuts across the group’s investment banking division as part of efforts to slim down the bank and reduce the number of highly paid staff. It was also stripping back ‘non-core’ parts of the business and focusing on regions where it had more competitive advantage. Venkat said on Monday that Barclays has ‘strong historical connections in the region’ and was ‘well-positioned to help clients access capital, transform and grow in this dynamic market’. ‘Saudi Arabia is central to our Middle East growth strategy and we are very excited to support the kingdom’s growth ambitions under its Vision 2030,’ he said. ‘Expanding our investment bank capabilities in the kingdom is a significant milestone for us as we continue to grow our regional footprint in key markets.’ Saudi Arabia’s ambition transformation plan is aimed at diversifying the country’s economy away from oil and boosting its labour force. It is also investing heavily into infrastructure projects, including the construction of a futuristic desert city called Neom, as well as artificial intelligence, AI, and manufacturing. Barclays’ return to Saudi Arabia comes after other US rivals including JPMorgan Chase & Co and Goldman Sachs Group Inc also recently secured a regional headquarters licence to expand their operations in the region. Meanwhile, Chancellor Rachel Reeves is leading a UK delegation to Saudi Arabia in a search for economic growth, meeting senior Saudi royals, US administration figures and global business chiefs. The Treasury hopes a trade deal with the Gulf Co-operation Council, GCC, could add £1.6 billion to the UK economy and contribute an additional £600 million to UK workers’ annual wages in the long term. Barclays shares rose 1.5% to 394.05 pence each on Monday afternoon in London. By Anna Wise, PA Business Reporter Press Association: Finance source: PA Copyright 2025 Alliance News Ltd. All Rights Reserved.
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