Back to top

Image: Bigstock

Citigroup Obtains License to Establish Regional Headquarters in Riyadh

Read MoreHide Full Article

Citigroup Inc. (C - Free Report) received approval from the Ministry of Investment Saudi Arabia (MISA), which allows the bank to open its regional headquarters in Riyadh, per an internal memo obtained by Reuters. 

Fahad Aldeweesh, CEO of Citigroup Saudi Arabia, highlighted the importance of this development in the memo, stating, “This marks a significant leap forward for our franchise in Saudi Arabia, and we look forward to our continued growth in the kingdom.”

As part of Crown Prince Mohammed bin Salman's initiatives to diversify the economy and reduce its dependency on the oil industry, the nation is actively inviting international companies to set up regional headquarters within its country. Saudi Arabia has introduced competitive measures to attract foreign companies to operate in the country, by offering tax breaks. Under the new rules implemented this year, firms are required to establish a regional base in Saudi Arabia with a minimum of 15 employees, including executives managing operations in other countries, or risk losing access to the kingdom’s extensive network of government contracts.

Citigroup's approval from MISA is followed by similar moves by other major financial firms like The Goldman Sachs Group, Inc. (GS - Free Report) and Lazard, Inc. (LAZ - Free Report) , which have also secured licenses to establish regional headquarters in Riyadh. Both GS and LAZ aim to expand in the region to capitalize on Saudi Arabia's growing economy and its increasing appeal to Wall Street players.

C’s Prior Efforts to Increase Footprint in Key Markets

The bank has been actively growing its footprint into key growth markets. In June 2024, the bank launched Citi Commercial Bank (“CCB”) in Japan with an aim to expand its commercial banking in key growth areas across certain clusters. This launch follows CCB’s introduction in France and Ireland in 2023, preceded by its launch in Germany, Switzerland and Canada in 2022.

Through expanding its operations in rapidly growing markets, the bank is likely to capitalize on its growing economy, which is set to benefit the bank by diversifying its market and revenue streams.

Citigroup’s Price Performance & Zacks Rank

Shares of Citigroup have gained 9.9% over the past six months compared with the industry’s growth of 24.3%. 

Zacks Investment Research
Image Source: Zacks Investment Research

Currently, C carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Goldman Sachs Group, Inc. (GS) - free report >>

Citigroup Inc. (C) - free report >>

Lazard, Inc. (LAZ) - free report >>

Published in