Bank of China Approved for Saudi Branch Launch
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Bank of China has been approved by Saudi Arabian authorities to open a branch in the kingdom, in yet another move towards further internationalization.
Saudi Arabia’s cabinet approved the Chinese lender’s license, according to a report citing a tweet from the state news agency SPA.
Bank of China joins a wave of Chinese firms seeking to expand in Saudi Arabia, its close strategic ally and top oil supplier. Saudi Arabia is undergoing major reforms to diversify the economy away from energy in a grand strategy called «Saudi Vision 2030». Four years ago, rival lender, Industrial and Commercial Bank of China, launched its first branch in Riyadh.
Capitalizing on Saudi Arabian opportunities aside, the branch launch marks another step towards for China towards further internationalization through its financial entities. In December last year, Bank of China launched its first branch in Romania through the capital of Bucharest.
Questions & Answers
Q.What is the primary motivation for Bank of China to open a branch in Saudi Arabia?
What is the primary motivation for Bank of China to open a branch in Saudi Arabia?
The branch launch in Saudi Arabia represents another step for China's financial entities towards further internationalisation. It also allows Bank of China to capitalise on opportunities arising from Saudi Arabia's economic reforms.
Q.What wider economic strategy is Saudi Arabia pursuing that might attract foreign banks?
What wider economic strategy is Saudi Arabia pursuing that might attract foreign banks?
Saudi Arabia is implementing a grand strategy known as 'Saudi Vision 2030'. This initiative involves major reforms aimed at diversifying the kingdom's economy, reducing its reliance on the energy sector.
Q.Has another major Chinese bank previously established a presence in Saudi Arabia?
Has another major Chinese bank previously established a presence in Saudi Arabia?
Yes, a rival Chinese lender, Industrial and Commercial Bank of China, launched its first branch in Riyadh four years ago. Bank of China is following a similar path by entering the market.
Q.Has Bank of China recently expanded into other international markets before this Saudi approval?
Has Bank of China recently expanded into other international markets before this Saudi approval?
Yes, Bank of China recently expanded its international presence in December last year. It launched its first branch in Romania, located in the capital city of Bucharest, prior to the Saudi Arabian approval.
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