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Mitsubishi UFJ to Hire 20 New Staff for Operations in Saudi

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In an effort to attract benefits from privatization in Saudi Arabia, which is valued at over $350 billion for the next five years, Mitsubishi UFJ Financial Group Inc. is set to hire 20 people. The number is expected to go up to 60 in the next three-five years. The news was reported by Bloomberg.

The bank is known as MUFG and will become the first lender in Japan to start its banking operations after receiving approval from kingdom’s central bank in December 2016. The bank is said to open its first branch in Riyadh next year.

Saudi Arabia is trying to diversify its economy and decrease its dependence on oil through restructuring of public-sectors and investment in infrastructure. Japanese Banks are trying to take advantage of it.

MUFG may help Saudi Arabian Oil Company by acting as underwriters for its share sale in 2018, as it holds a stake in Morgan Stanley which is the lead underwriter with JPMorgan. The sale could be one of the world’s largest initial public offering and would raise more than $100 billion.

In the past, MUFG played a vital role in helping the Saudi government arrange a loan worth $10 billion and helped with an international bond sale worth $17.5 billion. This makes us positive about its prospects in Saudi Arabia.

Some foreign bank stocks worth considering are Banco Bilbao Vizcaya Argentaria, S.A. (BBVA - Free Report) , KB Financial Group Inc. (KB - Free Report) and National Australia Bank Limited (NABZY - Free Report) .

Banco Bilbao Vizcaya Argentaria, S.A.’s earnings estimates have been revised upward by 7.4% for the current year, in the past 30 days. Also, the stock has gained approximately 8.5% over the last three months.

KB Financial Group Inc. has witnessed an 18.9% upward earnings estimate revision for the current year, in the past 30 days. Moreover, its shares have gained nearly 5.8% over the last three months.

National Australia Bank Limited’s current-year earnings estimates have been revised 5.3% upward, over the last 30 days. Further, its shares have rallied approximately 3.8%, in the last three months.

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