The Bank of New York Mellon Corporation (BNY), a global financial services company, today revealed that it has been granted a regional headquarters (RHQ) license by the Ministry of Investments in Saudi Arabia (MISA). This strategic move highlights BNY’s commitment to enhancing its operations in the Middle East, according to a statement.
The RHQ located in Riyadh will deliver strategic, administrative, and corporate services for BNY throughout the Middle East. BNY’s existing Asset Servicing solutions available for clients in the Kingdom of Saudi Arabia include Global Custody Services, Global Risk Solutions, Custody FX, and Institutional Accounting under a Capital Markets Authority license.
“The Kingdom of Saudi Arabia is delivering on its Vision 2030, and we will continue to bring BNY’s expertise across the financial lifecycle to help the KSA achieve its ambitions,” said Hani Kablawi, head of International at BNY. “Today’s announcement underscores the strategic importance of the Middle East in BNY’s international growth plans and our commitment to being an enduring partner to our clients across the region.”
Saudi Arabia’s incentives for foreign firms
Riyadh has been actively aiming to attract more companies to establish their regional headquarters in the kingdom by offering tax breaks, as Crown Prince Mohammed bin Salman seeks to diversify the economy away from oil by drawing in foreign investment.
Saudi Arabia’s new rules stipulate that foreign firms must have regional headquarters in the kingdom in order to access lucrative government contracts. In May 2024, Goldman Sachs received a license to set up its regional headquarters in Riyadh, while U.S. lender Citigroup secured a similar approval late last year.
Middle East: A growing market for global banks
The Middle East has emerged as a vital growth market for global banks like BNY, propelled by a surge in sovereign wealth fund activity, substantial infrastructure investments, and the expansion of capital markets across the Gulf. As regional economies diversify away from oil and attract foreign capital through reforms and regulatory enhancements, international financial institutions are increasing their presence to seize new business opportunities in asset servicing, custody, and advisory.
The new regional headquarters in Riyadh will provide strategic, administrative, and corporate support for BNY’s operations across the Middle East, according to the custodian bank.
BNY has a decades-long history of working with clients in Saudi Arabia, UAE, Kuwait, Qatar, Bahrain, and Oman, providing access to global markets, developing local market infrastructure capabilities, and supporting the growth of the Gulf Cooperation Council’s capital markets landscape.
