Goldman gets approval for Saudi equities trading licence

Reuters

Goldman Sachs received approval to trade equities in Saudi Arabia, joining the growing band of western investment banks and fund managers expanding in the kingdom.
Western financial institutions have been looking to tap new opportunities in Saudi Arabia since the government unveiled plans for oil giant Saudi Aramco’s $100 billion initial public offering and introduced reforms to attract foreign capital as part of moves to reduce the economy’s dependence on oil.
Goldman, which has been operating in the kingdom since 2009 as an agent and underwriter, applied to the Saudi Capital Market Authority (CMA) for a licence to trade equities, sources told Reuters in June.
In a statement, the regulator said it had approved a request by Goldman to amend its business in the kingdom and that the bank was now authorised for principal dealing, fund and portfolio management and advisory and custody activities.
A source familiar with the matter confirmed that the licence was for the approval of equities trading.
Citigroup obtained a Saudi investment banking licence in April, which will allow it to return to the kingdom after more than 13 years, while Credit Suisse is seeking a Saudi licence to build a fully-fledged onshore private banking business.
It is the second time in three years Goldman has changed its services in Saudi Arabia. In 2014 the CMA authorised it to arrange, advise and manage investment funds and portfolios, according to its website.
The Saudi stock exchange opened itself to direct investment by foreign institutions in mid-2015 and last year eased restrictions on foreign ownership in its stock market to improve the investment environment.
International firms such as BlackRock, Citigroup, HSBC and Ashmore Group have since been among those to join the list of institutional investors that can directly trade the market.

Saudi’s largest bank hires
investment banking head
bloomberg

Sameer Nawaz has been appointed head of investment banking at Saudi Arabia’s Al Rajhi Capital as the Islamic bank looks to build its advisory business, according to people familiar with the matter.
Nawaz will be responsible for building an investment banking team at the securities division of Al Rajhi Bank as the kingdom’s biggest lender by market value seeks to capitalise on an expected surge in deals, the people said, asking not to be identified as the information is private.
Previously, Nawaz was co-head of investment banking at Saudi Fransi Capital.
Nawaz had been at the securities arm of Banque Saudi Fransi since 2006, according to his LinkedIn profile. Saudi Fransi Capital has worked on more initial public offerings in the kingdom over the past five years than any other bank, according to data compiled by Bloomberg. Banks are hiring in Riyadh in anticipation of a boom in fees as the government ramps up efforts to wean the economy off oil.