Banking Giants Race to Riyadh as MBS Steps Up Pressure Campaign
The kingdom’s vast wealth is attractive to banks — but they still face local challenges.
Crown Prince Mohammed Bin Salman has made it easier for foreign firms to operate, but a new law is also forcing them to set up headquarters in the country.
Photographer: Jeremy Suyker/BloombergWhen Deutsche Bank AG last month brought back its former CEO for the Middle East and Africa, the reappointment came with a twist: Unlike his prior stint at the German lender, Jamal Al Kishi will no longer be based in Dubai, the region’s traditional business hub known for swanky villas and expat comforts. Instead, he will be based in a far less glamorous Middle Eastern city — Riyadh.
Germany’s largest lender is also ramping up headcount in the Saudi Arabian capital, one of the few places it is doing so globally. The changes reflect how the conservative city — where alcohol is banned — is gradually emerging as a financial hub. Taking a carrot-and-stick approach, Crown Prince Mohammed Bin Salman has made it easier for foreign firms to operate, but a new law is also forcing them to set up headquarters in the country or risk losing business from government entities sitting on billions of dollars in oil wealth.