Rothschild & Co. plans to bulk up its Saudi Arabia operations by hiring or relocating bankers as it sets up a new office in Riyadh’s mammoth financial center.
The Paris-based bank said it is moving into the King Abdullah Financial District, the $10 billion business hub north of the capital that stood largely empty for many years but is now in demand among foreign and local firms.
Prominent tenants of the district include Saudi Arabia’s $700 billion sovereign wealth fund and domestic banking heavyweights such as Saudi National Bank, though Rothschild will be among the first international advisory firms there.
Leading the new office is Nasser Al Issa, managing director and head of Saudi Arabia, who was hired by the bank in 2022. The office will have seven bankers on the ground and aims to double its size in the medium term, Saeed Al Awar, partner and head of the Middle East at Rothschild, said in an interview.
“Localizing presence is a key strategy for us, and therefore we would look to continue growing our on-the-ground local presence in the Kingdom,” he said. “The seven people we have would live in Riyadh and be permanently based out of the Kingdom,” he added, saying proximity to clients was among the key reasons for the bank’s decision.
Rothschild’s plans are also a further sign that global banks are pursuing more business opportunities in the kingdom. The Arab world’s largest economy has been undergoing dramatic reforms in recent years, including the privatization of oil giant Aramco and the emergence of the Public Investment Fund as a global deal-maker.
Riyadh’s resurgence as a business hub puts it in direct competition with neighboring Middle Eastern centers in Dubai and Abu Dhabi, where Rothschild also has a presence. The bank said it will relocate bankers from Dubai and elsewhere to its new Saudi hub.
Rothschild, one of the world’s oldest banks, said it would offer its usual suite of products in Saudi Arabia, including advising on mergers and acquisitions, debt advisory, restructurings and equity markets services.
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Rothschild, alongside other independent advisers like Moelis & Co., are among the most active investment banks in the Middle East. The bank’s recent deals include advising Saudi Tadawul Group on its acquisition of a minority stake in Dubai Mercantile Exchange and Rocco Forte Hotels on a 49.9% stake sale to Saudi Arabia’s wealth fund.