Banking heavyweight Rothschild has announced plans to enlarge its operations within Saudi Arabia by appointing or relocating bankers, coinciding with the establishment of a new office in Riyadh’s vast financial hub.
The Paris-based bank is set to extend its reach to the King Abdullah Financial District, a business center with a projected worth of $10 billion located north of the capital, which has recently witnessed a wave of relocations from numerous local and international firms and institutions.
Among the notable tenants in the area is Saudi Arabia’s sovereign wealth fund, valued at $700 billion, and significant local banking institutions like the Saudi National Bank. Rothschild is expected to be one of the primary international advisory firms to set up shop there.
RelatedNews
Nasser Al-Eissa, appointed as the Managing Director and Head of Saudi Arabia by the bank in 2022, will lead the new branch. Said Al-Houari, Partner and Head of the Middle East division at Rothschild, mentioned in an interview reviewed by Bloomberg that the Riyadh office will initially consist of seven bankers, with intentions to double in size over the medium term.
“Local presence is a key strategy for us, and we are looking forward to further strengthening our on-the-ground presence in the Kingdom,” Al-Houari stated. He emphasized that the team of seven will reside in Riyadh and maintain a permanent presence outside of the kingdom, citing proximity to clients as a driving force behind the bank’s decision.
Rothschild’s expansion plans are also indicative of a growing trend among global banks seeking commercial opportunities within the Kingdom. Saudi Arabia, the largest economy in the Arab world, has been undergoing significant reforms, including the privatization of state oil giant Aramco and the Public Investment Fund emerging as a global dealmaker.
As one of the world’s oldest banks, Rothschild will offer its usual suite of products in Saudi Arabia, including advisory on mergers and acquisitions, restructuring, and equity market solutions.
Alongside other independent advisors like Moelis, Rothschild is among the most active investment banks in the Middle East. Its recent deals include advising the Saudi Tadawul Group on acquiring a minority stake in the Dubai Mercantile Exchange and advising on the sale of a 49.9% stake in Rocco Forte Hotels to the Saudi wealth fund.
