BNP Paribas has secured a regional headquarters licence in Saudi Arabia, the Saudi Press Agency reported on 25 August, strengthening the French bank’s presence in the kingdom as Riyadh seeks to attract international firms and develop its financial centre.

The licence was announced during a meeting in Paris between Saudi investment minister Khalid Al-Saif and BNP Paribas chairman Jean Lemierre, according to SPA. The bank already operates across Saudi Arabia, the United Arab Emirates, Qatar, Kuwait and Bahrain as part of its Middle East business.

Saudi Arabia has been encouraging multinational companies to establish regional headquarters in Riyadh as part of efforts to increase foreign investment and make the capital a leading financial hub in the Gulf. The policy puts pressure on companies to establish a substantial local presence, with the government stating that firms without a Riyadh headquarters risk losing access to state contracts.

Regional headquarters rules require companies to maintain a Saudi base with at least 15 employees, including executives responsible for operations in other countries. The regulations were introduced as part of measures intended to reduce what the Saudi government has described as “economic leakage” from state spending.

BNP Paribas joins a growing group of international financial institutions that have established regional headquarters in Saudi Arabia. Goldman Sachs, Morgan Stanley and Deutsche Bank are among the global banks to have received licences as the kingdom seeks to attract more international financial services activity.

The expansion comes as Saudi Arabia competes with Dubai and Abu Dhabi for financial and investment business in the Gulf. Riyadh’s strategy forms part of wider economic reforms designed to attract foreign capital and diversify the Saudi economy beyond its reliance on oil.

For BNP Paribas, the licence gives the bank a more formal regional base in Saudi Arabia while it maintains its existing footprint across the Gulf. The French lender’s presence in the kingdom includes services supporting corporate and institutional clients, alongside its broader Middle East operations.

The announcement follows a period of closer economic engagement between Saudi Arabia and France. The licence was disclosed during the meeting between Lemierre and Saudi investment minister Al-Saif in Paris, against a backdrop of wider bilateral agreements and investment activity.

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