RIYADH: Germany’s Deutsche Bank AG is considering Saudi Arabia and Indonesia as its key markets for expansion, as governments in the resource-rich nations are spending heavily, according to a top official.
Claudio de Sanctis, head of international private banking at Deutsche Bank said that the financial firm is planning to invest heavily in the Middle East and Southeast Asia to tap an expansion of wealth and flow of funds to the regions, according to a Bloomberg report.
“If you look at the next 24 months in terms of strategic growth, the clear focus for the international private bank is South East Asia and the Middle East,” said de Sanctis.
He further noted that countries in South East Asia and the Middle East are enjoying strong tailwinds for wealth creation due to multiple factors which include ongoing economic reforms, geopolitical considerations and trade flows.
Earlier in February, Deutsche Bank had poached three bankers from Credit Suisse to cover wealth clients in Saudi Arabia.
The comments from de Sanctis regarding a potential expansion into the Kingdom come just a few days after Zaid Khaldi, co-head of Goldman Sachs in the Middle East and North Africa said that it is hiring wealth managers in the UAE and Saudi Arabia.
“Money is coming in because of the positive macro, it makes sense for money to be deployed here and there is growth,” said Khaldi, early in November, during an interview with Bloomberg.
He also added that Goldman Sachs has more than doubled its headcount in Saudi Arabia in recent years, and is planning to move to a bigger office in 2022 as it sees significant growth opportunities within the Kingdom.
Saudi Arabia has become one of the hottest destinations for foreign banks post the announcement of Vision 2030, which aims to diversify the Kingdom’s economy.
Riyadh has already opened up its stock market to foreign investors, and the Kingdom’s Public Investment Fund is now one of the most prolific investors globally with assets valued at $620 billion.
Earlier in October, Paris-based financial investment and advisory firm Rothschild & Co. officially entered Saudi Arabia by appointing Nasser Al-Issa as the firm’s head in the Kingdom, while Mark Sedwill has been named the chairman.
Quoting people familiar with the matter, Bloomberg reported that the financial firm began applying for a license to set up in the Kingdom earlier this year, and it is planning to add more bankers in Riyadh.
