Citigroup said to eye Saudi banking license

New York-based Citigroup Inc. is in advanced discussions for a banking license in Saudi Arabia, after a 10-year absence from the kingdom, Bloomberg reported citing sources familiar with the matter.

Citigroup is looking for ways to capitalize on the kingdom’s financial reforms, as Saudi Arabia is becoming more attractive to foreign banks especially with Saudi Aramco’s potential initial public offering (IPO).

The license would seal the bank’s return to the kingdom after winning a role as lead adviser on the country’s first international bond sale, which raised $17.5 billion last year.

Without a license from the CMA, international banks face restrictions on working on deals that are signed in Saudi Arabia or takeovers in which the target company is based in the kingdom.

The firm lost a key banking license when it sold its stake in Samba Financial Group in 2004, and it made unsuccessful attempts to return to the country in 2006 and 2010.