Barclays, one of the United Kingdom’s largest and most influential banking institutions, is preparing a strategic comeback to Saudi Arabia after an 11-year absence. The London-based lender has announced plans to open a new office in Riyadh in 2025, marking a significant step in its regional expansion strategy and reaffirming its interest in the Middle East’s largest economy.
The move comes amid rapid economic transformation in Saudi Arabia, driven by Vision 2030—Crown Prince Mohammed bin Salman’s ambitious national reform and diversification program aimed at reducing the kingdom’s dependence on oil. With a growing private sector, a booming capital market, and a pipeline of major investment projects, Saudi Arabia has once again become a critical destination for global financial institutions.
A Strategic Comeback
Barclays originally exited Saudi Arabia in 2014 by surrendering its banking license as part of a broader restructuring strategy following the 2008 financial crisis. The bank had shifted focus toward consolidating its operations and reducing exposure to non-core markets. However, the global banking landscape has evolved significantly since then—particularly in the Gulf region.
In a statement announcing the return, Barclays highlighted Saudi Arabia’s “dynamic economic reforms and increasing appeal to international investors” as core reasons for re-engagement. The Riyadh office is initially expected to focus on:
- Investment banking advisory
- Debt and equity capital markets
- Mergers and acquisitions advisory
- Private capital financing
Industry analysts note that Barclays’ return is aligned with its global strategy to expand within fast-growing, high-opportunity markets. Saudi Arabia, with over $1 trillion in planned development projects and one of the world’s fastest-growing G20 economies, fits that profile perfectly.
Riyadh: The Financial Capital of the Middle East?
In recent years, Riyadh has emerged as a magnet for international banks eager to capitalize on growing deal flows from privatization projects, sovereign debt issuance, and mega-project financing. Global banks such as JPMorgan, Goldman Sachs, HSBC, and Citi have expanded their presence in the kingdom’s capital.
Saudi Arabia’s Capital Market Authority (CMA) has streamlined regulations to attract foreign financial firms, while the Saudi Tadawul stock exchange has seen increased IPO volume, including high-profile listings backed by the Public Investment Fund (PIF).
Barclays is expected to compete for advisory roles related to:
- PIF-backed giga projects like NEOM, The Line, and Qiddiya
- Industrial diversification
- Renewable energy expansion
- Infrastructure and logistics investments
- Technology and AI sector financing
Why Now? Barclays’ Saudi Play Explained
Barclays’ re-entry into Saudi Arabia reflects four strategic objectives:
| Objective | Rationale |
|---|---|
| Expand Emerging Market Footprint | Capture growth opportunities beyond Europe and the U.S. |
| Strengthen GCC Presence | Leverage financial activity in Saudi Arabia and the UAE |
| Tap Sovereign Wealth Relationships | Deepen ties with the $940B Public Investment Fund |
| Grow Investment Banking Revenue | Capitalize on growing M&A and capital markets activity |
The kingdom’s capital markets recorded over $11 billion in IPO proceeds in 2023, placing it among the most active globally. With continued government privatization and PIF’s global dealmaking appetite, Barclays sees significant potential.
Past Lessons, Future Prospects
Barclays was once active in Saudi Arabia through investment banking and wealth management services. However, its earlier exit was seen as a retreat during a time of restructuring. Its return now indicates renewed long-term commitment and confidence in sustainable profitability in the region.
Unlike its previous local presence, Barclays today enters a far more open and internationally connected Saudi economy. The bank is expected to build local partnerships and talent pipelines while adhering to Saudization policies that prioritize local expertise.
Economic and Political Timing
The bank’s re-entry also coincides with warming economic ties between the UK and Saudi Arabia. Trade between the two nations surpassed £17 billion in 2023, and UK banks are increasingly involved in financing Gulf energy transition projects.
Moreover, Saudi Arabia’s pivot toward global investment and capital market openness creates a geopolitical backdrop that favors multinational participation—something Barclays will be keen to leverage.
Conclusion: A Strategic Bet on the Future of Finance in the Gulf
Barclays’ decision to reopen in Saudi Arabia is more than a return—it’s a strategic bet on the future of finance in the Gulf. As the kingdom transforms into a global investment hub, international banks like Barclays are positioning themselves to benefit from one of the most ambitious economic overhauls in modern history.
If executed effectively, this move could reestablish Barclays as a major player in Middle Eastern investment banking and open the door to billions in potential advisory and capital market fees. For now, all eyes will be on Riyadh as Barclays builds its new chapter in Saudi Arabia.
