The Bank of New York Mellon (BNY Mellon) has acquired a license from the Ministry of Investments (MISA) to establish a regional headquarters (RHQ) in Saudi Arabia. This move is part of the country’s broader effort to diversify its economy and reduce reliance on the oil industry.

Under the initiatives led by Crown Prince Mohammed bin Salman, Saudi Arabia is actively encouraging international companies to set up their regional headquarters within its borders. The country is implementing competitive measures, including tax breaks, to attract foreign businesses. BNY Mellon’s expansion is in line with the Vision 2030 plan, which requires foreign firms to establish a regional headquarters in Saudi Arabia to access government contracts.

The new RHQ in Riyadh will provide strategic, administrative, and corporate services for BNY Mellon’s operations in the Middle East. Hani Kablawi, the head of International at BNY Mellon, emphasized that this announcement highlights the Middle East’s strategic significance in BNY Mellon’s international growth plans, reaffirming the bank’s commitment to being a long-term partner for its clients in the region.

The approval from MISA follows similar decisions by major financial institutions like Goldman Sachs and Citigroup, which also obtained licenses to set up their regional headquarters in Riyadh last year. Goldman Sachs received its approval in May 2024, while Citigroup was granted a license in November 2024, both looking to benefit from Saudi Arabia’s expanding economy.

BNY Mellon has been actively pursuing growth in international markets through various initiatives, such as launching new services, digitizing operations, and making strategic acquisitions. In November 2024, the bank acquired Archer and announced plans for Alts Bridge in September.

Over the past six months, BNY Mellon’s stock has increased by 6.6%, compared to a 13.4% decline in the industry. Currently, the company holds a Zacks Rank of #3 (Hold), indicating its market position.