Saudi Arabia is fast becoming a magnet for global finance. The kingdom’s capital, Riyadh, is seeing a wave of regional headquarters, investment‑banking teams and asset‑management firms setting up shop. This shift reflects a broader Gulf‑wide trend of financial institutions building permanent operations in the region.
Bank licences signal confidence in Saudi market
In July, Deutsche Bank secured a regional headquarters licence in Saudi Arabia, joining JPMorgan, Goldman Sachs, Morgan Stanley and other major banks that are expanding their presence in the Kingdom. The licences give foreign banks a foothold to serve local and regional clients from Riyadh.
Saudi Arabia’s Regional Headquarters Program requires foreign companies seeking government contracts to establish bases in the Kingdom. The policy is designed to encourage long‑term investment and to position Riyadh as a leading business hub for the Middle East.
Reforms drive record foreign investment
Foreign investors recorded $1.6 billion in net purchases on the Saudi Exchange during the second quarter of 2026, making it the only GCC market to post net foreign buying in that period, according to Kamco Invest. The inflow highlights growing confidence in the kingdom’s capital‑market reforms.
“The Gulf’s attractiveness is increasingly institutional rather than merely financial,” Naman Sharma, partner at Kearney Middle East and Africa’s financial services practice, told Arab News. “The Gulf is establishing itself as an important center of regional financial activity.”
— Naman Sharma, Partner, Kearney
Data from the Capital Market Authority show assets under management more than doubled from SR612 billion ($163 billion) in 2020 to SR1.244 trillion by the end of 2025. Listed companies rose 89 percent to 392, and foreign ownership doubled to SR417 billion, underscoring the deepening market depth.
UAE’s financial hub joins the surge
The Abu Dhabi Global Market is attracting 11 international financial institutions that together represent more than $9 trillion in assets, reinforcing its status as one of the region’s fastest‑growing financial centres.
Industry leaders say the most important shift is that Gulf countries are moving from being primarily a client and fundraising market for international financial institutions to becoming a place where they manufacture products, manage portfolios and operate regional businesses.
Frequently asked questions
What banks have secured regional headquarters licences in Saudi Arabia in 2026?
Deutsche Bank obtained a regional headquarters licence in July 2026, joining JPMorgan, Goldman Sachs and Morgan Stanley, which are also expanding their presence in Riyadh.
How much net foreign investment was recorded on the Saudi Exchange in Q2 2026?
Foreign investors posted $1.6 billion in net purchases on the Saudi Exchange during the second quarter of 2026, the only GCC market with net foreign buying that period.
What was the growth in assets under management in Saudi Arabia from 2020 to 2025?
Assets under management rose from SR612 billion ($163 billion) in 2020 to SR1.244 trillion by the end of 2025, more than doubling the portfolio size.
How does the Regional Headquarters Program encourage banks to set up in Riyadh?
The Regional Headquarters Program requires foreign firms seeking government contracts to establish a base in Saudi Arabia, giving banks a foothold to serve local and regional clients from Riyadh.
