In a significant stride towards enhancing its presence in the Middle East, Citigroup (C) has been granted permission to establish its regional headquarters in Riyadh, Saudi Arabia. This development was revealed through an internal memo accessed by Reuters. The move aligns with Saudi Arabia’s strategy, under Crown Prince Mohammed bin Salman, to diversify its economy away from oil dependency by attracting international investment through incentives like tax breaks.
The approval from the Ministry of Investment Saudi Arabia (MISA) underscores the kingdom’s efforts to enforce new regulations requiring foreign entities to set up their regional headquarters within its borders. Non-compliance could lead to the forfeiture of lucrative government contracts potentially worth billions. This initiative is part of a broader economic transformation plan that has seen over 500 companies establish their regional offices in Riyadh since its inception.
Fahad Aldeweesh, CEO of Citi Saudi Arabia, expressed optimism about this development, stating in the memo, “This marks a significant leap forward for our franchise in Saudi Arabia and we look forward to our continued growth in the kingdom.”
This move by Citigroup follows a similar step by another Wall Street giant, Goldman Sachs (GS), which secured a license in May for its regional headquarters in Riyadh, indicating a growing trend of major financial institutions setting roots in Saudi Arabia as it pushes for economic diversification and modernization.
Price Action: As of press time, Citi shares are trading at $70.14, up 1.7% intraday. The stock has gained 55% over the past year.
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