German giant Deutsche Bank has secured a regional headquarters licence in Saudi Arabia, giving the lender access to major government and state-linked contracts as the Kingdom pushes multinational companies to expand their presence in Riyadh, under the ambitious “Vision 2030” socio-economic diversification agenda.
“The new regional headquarters will be based in Riyadh and will oversee Deutsche Bank’s regional management, strategic decision-making and corporate functions across the Middle East,” the bank said in a statement.
Deutsche Bank joins several financial institutions that have already secured the licence, including JPMorgan, Goldman Sachs and Morgan Stanley.
Saudi Arabia has been asking multinational companies to relocate their regional headquarters to Riyadh in recent years, part of an effort to position the Gulf major’s capital as a leading financial hub. The government has said companies without a Riyadh headquarters risk losing access to state contracts.
The RHQ programme is central to Crown Prince Mohammed bin Salman’s ”Vision 2030″ plan to diversify the Kingdom’s economy away from oil.
“It will be Deutsche Bank’s third legal entity in Saudi Arabia, joining its Riyadh branch, established in 2006 and regulated by the Saudi Central Bank, and Deutsche Securities Saudi Arabia, established in 2007 and regulated by the Capital Market Authority,” the firm said.
The arrival of the licence also coincides with Deutsche Bank celebrating its 20 years of presence in the Kingdom, having established its Riyadh branch in 2006, which operates under a full commercial banking licence and is regulated by the Saudi Central Bank (SAMA). Over the past two decades, the German bank has built a strong and diversified platform in the Kingdom, further complemented by Deutsche Securities Saudi Arabia (DSSA), established in 2007 and regulated by the Capital Market Authority (CMA).
Reacting to the news, Jamal Al Kishi, Deutsche Bank’s chief executive for the Middle East and Africa, said, “Saudi Arabia and the Middle East are a key growth market for Deutsche Bank, and therefore receiving this regional headquarters licence marks an important step towards realising our strategic business expansion targets in the region. Among other things, it enhances our ability to deliver on our Global Hausbank strategy — being a trusted partner to our clients wherever they operate. As a leading global bank with strong European roots and a unique network spanning the globe, we are well positioned to connect our Saudi and regional clients to opportunities in Europe, Asia, the Americas and Africa while pursuing the attraction of foreign direct investments into Saudi Arabia and other regional markets.”