The opening of a branch for Standard Chartered Bank in Saudi Arabia indicates the strength of Saudi economy and the attractiveness of its market for international banks, according to experts.
Banks usually examine the investment and legislative environment and measure economic growth rates and value of available opportunities in new markets before deciding to move forward.
Saudi Cabinet approved Tuesday a license for Standard Chartered to open a branch in the Kingdom.
The decision also delegates the Minister of Finance to decide on any subsequent request to open other branches of the bank in the Kingdom’s cities. However, the bank shall comply with Saudi regulations and shall coordinate with the Saudi Arabian Monetary Agency to complete the necessary legal procedures.
Standard Chartered Bank has a head office in the UK and is located in a large number of countries.
It is one of the oldest banks in the world, and it specializes in financing mega projects, stock markets, bonds and investment banking and has an arm specializing in individual banking, corporate finance, investment banking and asset management.
Experts pointed out that international banks usually come with their expertise, technical and financing capabilities and human capital development in the markets they enter.
This is based on profitability and sustainable growth, which is achieved in Saudi Arabia since one of the most important factors is its legislative environment and its Vision 2030, which encouraged the bank to consider opening a branch in Saudi Arabia.
The Bank's entry into the Saudi market contributes to adding an international investor base through its relationships around the world, and the private sector will benefit by receiving new banking products and financing tools.
Foreign banks’ requests to enter the Saudi market reflect the development of legislation said Central Bank Chief Ahmed al-Kholifey.
He stressed that the rapid response to these requests comes to support the financial sector development program within the Kingdom’s Vision 2030.
