BNP Paribas’ 20-year legacy in Saudi Arabia 
Two decades ago, Michel Dubois, the first CEO of BNP Paribas’ branch in Saudi Arabia, invited me to a small reception celebrating the launch of the bank’s operations in Riyadh at Al-Faisaliah Tower.
Months later, the bank successfully concluded a Shariah-compliant financing facility for a leading retail brand owned by a prominent family based in Jeddah. BMG Financial Group was the arranger.
Last week, I received an invitation from Reema Alasmari, the head of territory at BNP Paribas for Saudi Arabia, to attend their 20th-anniversary celebration and the inauguration of their new offices at King Abdullah Financial District in Riyadh.
BNP Paribas Group, one of the first international banks to receive a license from the Saudi Central Bank, has announced its decision to relocate its bank branch and investment company to the financial district. This is a part of its strategy to enhance the bank’s services and operational capabilities in the region.
On the investment banking front, BNP Paribas Investment Company KSA, which operates as a wholly owned subsidiary of BNP Paribas S.A., has been active in Saudi Arabia since its incorporation in 2009.
The company is licensed to conduct various financial services, including securities business, custody services, and financial advisory, and is well-positioned to leverage its new location in the financial district to expand its operations.
As a part of its achievements over the past 20 years, BNP Paribas has participated in several notable sukuk deals in the country, including acting as a lead manager for Saudi Electricity Co.’s sukuk issuances, which aimed to finance infrastructure projects and operational expenses.
BNP Paribas’ relocation to the King Abdullah Financial District aligns with broader trends in the banking sector
The bank also participated in various sovereign sukuk issuances by Saudi Arabia’s government, contributing to funding initiatives aligned with Vision 2030. Additionally, BNP Paribas was involved in the issuance of sukuk for the Saudi National Bank, helping to enhance the bank’s capital base and support its growth strategy.
Furthermore, the bank has supported numerous private sector companies in issuing sukuk, thereby facilitating access to capital markets for local businesses.
BNP Paribas’ relocation to the King Abdullah Financial District aligns with broader trends in the banking sector. Institutions are re-evaluating their operational strategies in response to regulatory requirements and market dynamics in the Middle East.
The King Abdullah Financial District is emerging as a premier business and lifestyle destination that will support the financial services sector’s growth in the Kingdom.
At the anniversary reception at the district, the presence of Mohammed Al-Tuwaijri, minister of state and member of the cabinet; Mohammed El-Kuwaiz, chairman of the Capital Market Authority; Ayman Al-Sayari, governor of the Saudi Central Bank; and Ibrahim Al-Mubarak, deputy minister of investment, was a bold statement.
This was a mark of the government’s support and endorsement of foreign direct investment, particularly for institutions that have demonstrated a legacy of commitment and value-addition to the national economy.
• Basil M.K. Al-Ghalayini is chairman and CEO of BMG Financial Group.
