Barclays PLC BCS is considering returning to Saudi Arabia as it aims to capitalize on the kingdom’s rising need to access capital markets globally. This was stated by C.S. Venkatakrishnan, the company’s CEO in an interview with Bloomberg.

How Barclays Plans to Enter Saudi Arabia?

The bank intends to expand its team across the Middle East region, which includes Dubai and Abu Dhabi alongside Riyadh.

Earlier this year, Barclays was among the lenders that assisted Saudi Arabia's Public Investment Fund in issuing a two-part sterling-denominated bond aimed at diversifying its investor base. The fund ultimately raised roughly £650 million ($844 million) via the sale of bonds.

“We’re looking at how best to re-enter the country, we will consider corporate banking work, but investment banking and trading will be the focus,” Venkatakrishnan stated.

Other Growth Initiatives Undertaken by BCS

Earlier this year, Barclays initiated a three-year plan to boost the profitability of its investment bank, a unit that includes trading, advisory and capital markets origination. The bank has been working on it through its emphasis on those clients that bring more of their business to the bank.

“We’re three-quarters into a twelve-quarter plan, so there’s a way to go but so far I’m encouraged by the progress,” Venkatakrishnan said. “So far so good. Investment bank division has had good results year-over-year, held it’s [sic] own.”

This potential re-entry into Saudi Arabia would come after a decade since Barclays exited the market under former CEO Antony Jenkins. This aligns with the global trend of banks expanding their operations in the oil-rich kingdom, which is currently undergoing a trillion-dollar economic transformation.

Other Finance Firms Making Inroads in Saudi Arabia

This April, BlackRock Inc. BLK agreed with the Public Investment Fund (PIF) to establish a Riyadh-based multi-asset class investment platform. The platform will be backed by an initial cash injection of up to $5 billion by the PIF, subject to certain milestones achieved.

BlackRock Saudi Arabia intends to establish BlackRock Riyadh Investment Management in collaboration with PIF to encompass investment strategies across a diverse range of asset classes, which would be managed by a Riyadh-based portfolio management team.

In March, Franklin Resources, Inc. BEN officially launched its operations in Saudi Arabia after obtaining two licenses from the country's regulator, thereby expanding its footprint internationally.

Franklin obtained a “Managing Investments and Operating Funds” license and an “Advising” license from Saudi Arabia's Capital Market Authority.