Barclays CEO on Saudi Arabia, US Economy, AI and Banking

Core Insights - Barclays is re-establishing its presence in Saudi Arabia by setting up a regional headquarters and obtaining necessary investment banking licenses, with strong support from the Saudi government [2][4][5] - The bank aims to facilitate foreign investment and liquidity in the Saudi economy, rather than competing with local banks in retail banking [5][6] - There is a significant opportunity in the Middle East for investment banking, particularly in IPOs, equity-linked business, and M&A activities, as the region has seen increased market activity [7][8][10] Group 1: Regional Strategy - Barclays has been in the Middle East for 130 years and is now focusing on establishing a regional headquarters in the King Abdullah financial district [3][4] - The bank's return to Saudi Arabia comes after a nearly decade-long absence, with a renewed focus on leveraging the strong UK-Saudi relationship [4][6] - The bank plans to grow its headcount in the new office as it secures licenses and expands its operations [2][3] Group 2: Investment Opportunities - The Saudi economy is experiencing a surge in sovereign debt issuance, presenting opportunities for Barclays to participate in this market [9][10] - There is a notable increase in wealth in the region, particularly with the movement of people to Dubai, which is becoming a significant offshore wealth center [11][13] - Barclays is already catering to asset managers and hedge funds relocating to the region, indicating a proactive approach to expanding its prime brokerage services [13][14] Group 3: Economic Outlook - The US economy shows signs of strength, with stable interest rates and low credit spreads, which could positively influence deal-making activities [26][27] - The ongoing changes in technology, particularly AI, are prompting companies to reassess their business models, potentially driving M&A activity [27][28] - Barclays is focusing on integrating AI into its operations to enhance productivity and efficiency across various roles [28][32]