Goldman Sachs Requests to Enter Saudi Capital Market
Multinational finance firm Goldman Sachs has requested the Saudi Arabia’s capital markets to grant a license to trade equities in a move to expand its presence in the kingdom, according Market Research Saudi Arabia.
Goldman made the request to the Capital Market Authority and a successful outcome could allow the giant finance firm to expand business, according sources.
It has been operating in the kingdom since 2009 as both an agent and underwriter, Market Research Saudi Arabia said.
In 2014, the Saudi Capital Market Authority allowed Goldman Sachs to arrange, advise and manage portfolios and investment funds.
The business build-up or hiring plan after the request remain unclear.
Goldman’s move shows increasing interest among fund managers and investment banks to expand in Saudi, after the kingdom disclosed plans for Aramco's US$ 100 billion initial public offering and initiated a string of reforms since 2015 to attract foreign capital.
Citigroup secured a license of investment banking which will allow the firm to return to Saudi after more than 10 years. Meanwhile, the Credit Suisse AG is seeking a banking license in the kingdom to build a fully-fledged onshore private banking business.
The opening up of the market and privatization of state-owned companies are part of a reform agenda to diversify the Saudi economy beyond oil by 2030.
The Saudi opened the stock exchange to multinational institutions in 2015 and ease restrictions on foreign ownership in a move to improve the investment environment.
The reforms have captured interests such as Citigroup, HSBC, BlackRock Inc and Ashmore Group to join the list of institutional investors that can directly trade the market.
This article is written by : marketresearchsaudi.com