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BNY Mellon Obtains Regional Headquarters License in Saudi Arabia

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The Bank of New York Mellon (BK - Free Report) or BNY Mellon has secured a license from the Ministry of Investments (“MISA”) to establish a regional headquarters (“RHQ”) in Saudi Arabia.

BK’s Rationale Behind Strategic Expansion 

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. 

The strategic expansion of BK into Saudi Arabia aligns with Vision 2030, which mandates foreign firms to establish a regional headquarters in the kingdom for accessing government contracts.  

The company’s RHQ in Riyadh will offer strategic, administrative, and corporate services for BK’s operation in the Middle East. Hani Kablawi, the head of International at BNY Mellon, stated, “Today’s announcement underscores the strategic importance of the Middle East in BK’s international growth plans and our commitment to being an enduring partner to our clients across the region.” 

BK’s approval from MISA is followed by similar moves by other major financial firms like Goldman Sachs (GS - Free Report) and Citigroup (C - Free Report) , which have also secured licenses to establish regional headquarters in Riyadh last year. Goldman Sachs received the approval in May 2024, while Citigroup obtained a license in November 2024. Both GS and C aim to expand in the region to capitalize on Saudi Arabia's growing economy.

BK’s Prior Efforts to Expand in Key Markets 

BNY Mellon has been trying to expand its presence in foreign markets and is undertaking several growth initiatives (including launching new services, digitizing operations, and making strategic buyouts). In November 2024, the company acquired Archer, while in September, it announced plans to launch Alts Bridge.

BK’s Price Performance & Zacks Rank 

In the last six months, shares of BK have gained 6.6% against the industry’s 13.4% decline. 

Zacks Investment ResearchImage Source: Zacks Investment Research

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


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