Western financial institutions have been looking to tap into new opportunities in Saudi Arabia since the government introduced reforms to attract foreign capital as part of moves to reduce the economy’s dependence on oil and unveiled plans for oil giant Saudi Aramco’s $100bn (£77.7bn, €85bn) initial public offering, reports Reuters.
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 license to trade equities, sources told the newswire in June.
The move follows the global investment bank’s asset management arm becoming the first to register foreign retail funds in the UAE.
Equities trading
In a statement on Sunday, 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 license was for the approval of equities trading.
Citigroup obtained a Saudi investment banking license in April, which will allow it to return to the kingdom after more than 13 years, while Credit Suisse is seeking a Saudi license to build a fully-fledged onshore private banking business.
