The decision comes after several months of regulatory deliberations, with the Saudi Central Bank granting the final approval for Citi’s operations. This move is part of the broader strategy by the Kingdom to attract international financial institutions and bolster its growing financial services sector. It also aligns with the country’s goals of reducing its reliance on oil by fostering the growth of other industries, including finance, technology, and healthcare.
Citi’s move to Riyadh is expected to bring enhanced services to both corporate clients and wealthy individuals in Saudi Arabia and across the broader Gulf region. The bank intends to leverage its global expertise and expand its offerings in investment banking, treasury and trade solutions, and private banking. The regional headquarters will serve as a hub to better manage and coordinate these services across the Middle East, North Africa, and Pakistan (MENAP) region.
Saudi Arabia’s regulatory environment has become increasingly attractive to foreign banks over the last few years. Since Crown Prince Mohammed bin Salman’s Vision 2030 plan was announced in 2016, the Kingdom has introduced sweeping reforms to modernize its economy. Among these reforms, easing regulations for foreign banks has been a key initiative to turn Riyadh into a global financial center. These reforms include opening up the stock market to more foreign investment and enabling greater participation by international banks in the country’s financial activities.
Citi’s entry into Saudi Arabia represents a broader trend of global banks strengthening their presence in the region. Many financial institutions are flocking to the Gulf as they look to tap into the wealth generated by the region’s oil exports, and as the Kingdom makes strides toward creating a more diversified and sustainable economy. Citi joins a growing list of international banks, including JPMorgan Chase and HSBC, which have either expanded their operations or opened new regional offices in the Kingdom.
The regional headquarters in Riyadh will help Citi better compete with local giants such as the National Commercial Bank (NCB) and the Riyad Bank, which have long dominated the Saudi market. Citi’s decision is expected to boost its efforts to win government contracts and strengthen ties with state-backed projects, especially those linked to Vision 2030’s key objectives. Among these projects is the development of the futuristic Neom city, which promises to revolutionize various sectors, including finance, and present new opportunities for global financial players.
Citi’s expansion into Saudi Arabia is likely to have ripple effects throughout the region. As the Kingdom works to position itself as a hub for investment, other countries in the Gulf Cooperation Council (GCC), such as the UAE and Qatar, are likely to ramp up their efforts to attract global financial players as well. These changes will likely lead to greater competition among regional financial centers and could result in more innovations in banking services and financial technologies, particularly in areas such as digital payments, fintech, and sustainable investing.
The opening of Citi’s regional headquarters is also a significant milestone for Saudi Arabia’s efforts to foster greater integration with the global financial system. By attracting large multinational banks like Citi, the Kingdom is not only diversifying its economy but also enhancing its role as a critical player in global finance. The timing of the approval could also be viewed as a strategic move to enhance Saudi Arabia’s standing ahead of its G20 presidency in 2025, where the country aims to spotlight its economic reforms and growing international influence.
For Citi, the move provides a significant opportunity to capture a larger share of the Middle East’s financial services market, which has become increasingly vital as global economic trends shift. The region is expected to see a rise in investment flows, especially as the Kingdom and other Gulf nations continue to push for foreign capital to fund their development projects.
As Citi ramps up its presence in the Kingdom, the bank’s focus will likely be on building relationships with key government institutions, as well as the private sector. The presence of high-net-worth individuals and large-scale multinational companies will offer Citi new avenues for business, particularly in the fields of asset management and private banking. The bank’s regional headquarters will also enable it to offer more localized solutions tailored to the needs of clients in Saudi Arabia and the wider GCC region.
The broader banking landscape in Saudi Arabia will also likely benefit from Citi’s presence. The competition introduced by foreign banks could drive local institutions to innovate and improve their services, particularly in technology adoption and customer service. This increased competition is expected to result in better products and services for consumers and businesses alike.