Goldman Sachs Applies to Trade in Saudi Capital Markets

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According to Reuters Goldman Sachs has applied for a license to trade equities in Saudi Arabia's capital markets

http://www.trunews.com/article/goldman-sachs-applies-to-trade-in-saudi-capital-markets

>(DUBAI, UAE) Goldman Sachs has applied to Saudi Arabia's capital markets regulator for a license to trade equities in the kingdom, two sources familiar with the move said, in the latest step by Western banks to expand operations in the country.

>Goldman has made the application to the Capital Market Authority (CMA) and a successful outcome could lead to a further expansion of its business in the kingdom, one of the sources said.

>Goldman has been operating in Saudi Arabia since 2009 as an agent and underwriter. In 2014, the Saudi Capital Market Authority approved a change in the bank's profile and it has been authorized to arrange, advise and manage investment funds and portfolios, according to its website.

>Further details of the business buildup or hiring plan were not immediately known

>Goldman declined to comment, while CMA did not respond to a Reuters request for a comment.

>The Wall Street bank's move indicates growing interest among investment banks and fund managers to expand in Saudi Arabia after the kingdom unveiled plans for oil firm Aramco's $100 billion initial public offering and introduced a string of reforms since 2015 to attract foreign capital.

>Citigroup obtained an investment banking license recently which will allow it to return to the kingdom after more than 13 years, while Credit Suisse AG is seeking a banking license in the kingdom to build a fully-fledged onshore private banking business.

>The opening up of the market and privatization of state-owned companies are part of a reform agenda to diversify the Saudi economy beyond oil by 2030.