Citigroup in talks for Saudi return after 2004 exit
CITIGROUP Inc. is in advanced discussions for a banking license in Saudi Arabia, returning after a more than 10-year absence from the kingdom, as the bank looks for ways to capitalize on financial reforms, according to people familiar with the matter.
The New York-based bank has started sounding out potential staff in expectation that the license application will succeed, the people said, asking not to be identified as the information is private. Ahmed Bozai, Citigroup’s chief operating officer for Middle East and Africa, and Carmen Haddad, a senior private banker for the firm’s operations in the region, are among executives in talks with Saudi Arabian regulators, two of the people said.
The bank has yet to receive a license and talks may still falter, they said. A spokeswoman for Citigroup declined to comment. The Capital Market Authority (CMA), which would issue the license, said in a statement that it won’t comment on any application before a final decision is reached.
The license would seal the bank’s return to the kingdom after winning a role as lead adviser on the country’s first international bond sale, which raised $17.5 billion last year. Saudi Arabia is becoming more attractive to foreign banks as it takes steps to overhaul its economy, including plans for what could be the largest ever initial public offering with the listing of Saudi Arabian Oil Co.
Citigroup has set up a company-wide task force, led by some of its most senior employees, to target business opportunities in Saudi Arabia, people familiar with the matter said in September. The firm lost a key banking license when it sold its stake in Samba Financial Group in 2004. The bank made unsuccessful attempts to return to the country in 2006 and 2010.
Without a license from the CMA, international banks face restrictions on working on deals that are signed in Saudi Arabia or takeovers in which the target company is based in the kingdom.
Citigroup can already pitch for international bonds and advisory work for Saudi clients from Dubai or their other global offices. The US bank was also able to pitch for the sovereign bond as the government is excluded from CMA rules.