The Saudi Cabinet on Tuesday approved the granting of a license to Bank of China to operate in the Kingdom and authorized the finance minister to decide on any request to open more branches.
This brings up the number of non-Saudi licensed lenders in the Kingdom to 15 commercial banks.
Authorizing a Chinese bank is a sign of the kingdom’s outgoing policy towards opening up prospects for economic cooperation with all countries, including East Asia, where China is leading one of the largest industrial, commercial and consumer growth movements in the world.
In 2012, the Industrial and Commercial Bank of China launched its first branch in Riyadh.
The Bank of China is one of the most financially mobile banks, as it is active with private and government organizations and institutions in Saudi Arabia.
It has lending relationships with the Saudi Electricity Company and Zain Group.
Xiao Liu Cheng, economic adviser at the Chinese Embassy in Riyadh, assured that the expansion of the presence of Chinese banks indicates the growing nature of relations and cooperation in the financial field between China and Saudi Arabia.
According to Cheng, this comes at a time that it can increase mutual trade.
The Chinese expert pointed out that the Industrial and Commercial Bank of China is currently playing an important and vital role in revitalizing the commercial and industrial relationship between Riyadh and Beijing.
Besides the newly-established bank, 14 foreign banks are currently operating in Saudi Arabia and they included: the Gulf International Bank, Emirates NBD, the National Bank of Kuwait, Bank Muscat, the National Bank of Bahrain, Qatar National Bank, and First Abu Dhabi Bank (FAB).
