RIYADH: French banking group BNP Paribas has received investment registration for a regional headquarters in Saudi Arabia, adding France’s biggest bank to a growing list of global financial institutions expanding in the Kingdom.
The registration was announced after Saudi Investment Minister Fahad bin Abduljalil Al-Saif met BNP Paribas Chairman Jean Lemierre in Paris to discuss cooperation and investment opportunities in the financial sector and support the bank’s expansion in Saudi Arabia and the wider region, the Saudi Press Agency reported.
The move comes as Saudi Arabia’s Regional Headquarters Program continues to attract multinational companies. The initiative supports Vision 2030’s economic diversification goals by offering tax incentives, including a 30-year exemption from corporate income and withholding taxes, as well as discounts and support services to eligible companies relocating their regional headquarters to the Kingdom.
The Kingdom is seeking to build Riyadh into a regional financial hub as part of its Vision 2030 economic diversification plan. The Financial Sector Development Program targets SR4.55 trillion ($1.21 trillion) in total banking assets by 2030 and aims to increase the number of fintech companies to 525.
“The meeting also saw the group receive investment registration for its regional headquarters in the Kingdom, a step that strengthens BNP Paribas’ presence as one of the world’s leading financial and banking institutions,” SPA reported.
It added: “This reflects the confidence of major international companies in the Saudi economy and the attractiveness of its investment environment, and reinforces the Kingdom's position as a regional hub for business and investment, in line with the objectives of Saudi Vision 2030.”
The announcement did not disclose the investment value associated with the headquarters or provide details on staffing or operations.
BNP Paribas already has a presence in Saudi Arabia and other Gulf markets, including the UAE, Qatar, Kuwait and Bahrain.
Global banks deepen footprint
Saudi Arabia has made regional headquarters a central part of its efforts to attract multinational companies and deepen foreign investment. BNP Paribas is the latest global financial institution to join the program, which was launched in 2021 and has attracted more than 750 companies, exceeding its target of 500 by 2030, according to SPA.
Deutsche Bank received a regional headquarters license in Saudi Arabia in July, establishing its Riyadh office as a platform for regional management, strategic decision-making and corporate functions across the Middle East.
The German lender said Saudi Arabia and the wider Middle East are key growth markets. The RHQ is its third legal entity in Saudi Arabia, alongside its Riyadh branch, established in 2006, and Deutsche Securities Saudi Arabia, established in 2007.
Deutsche Bank joins other global financial institutions including JPMorgan, Goldman Sachs and Morgan Stanley that have received RHQ licenses in the Kingdom.
