Barclays Mulls Over Re-Entering Saudi Arabia After Decade-Long Absence

Core Viewpoint - Barclays PLC is planning to re-enter the Saudi Arabian market to leverage the kingdom's increasing demand for global capital market access, as stated by CEO C.S. Venkatakrishnan [1]. Group 1: Barclays' Strategy in Saudi Arabia - The bank aims to expand its team in the Middle East, focusing on cities like Dubai, Abu Dhabi, and Riyadh [2]. - Barclays previously assisted Saudi Arabia's Public Investment Fund in issuing a two-part sterling-denominated bond, raising approximately £650 million ($844 million) [2]. - The focus of Barclays' re-entry will be on investment banking and trading, alongside potential corporate banking work [3]. Group 2: Growth Initiatives - Barclays has initiated a three-year plan to enhance the profitability of its investment banking division, which includes trading, advisory, and capital markets origination [4]. - The investment banking division has shown positive year-over-year results, with the CEO expressing encouragement about the progress made so far [5]. Group 3: Market Context - Barclays' potential return to Saudi Arabia follows a decade-long absence, aligning with a global trend of banks expanding operations in the oil-rich kingdom, which is undergoing a significant economic transformation valued at a trillion dollars [5]. - Other financial firms, such as BlackRock and Franklin Resources, are also making strides in Saudi Arabia, indicating a growing interest in the region [6][7].