![\"\"](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/08\/img_2239.jpeg\")
Naman Sharma, partner at Kearney Middle East and Africa\u2019s financial services practice.\u00a0<\/p>\n
\n\tRIYADH: Global financial institutions are rapidly expanding across the Gulf as market reforms and economic transformation programs reshape the region into one of the world\u2019s fastest-growing capital markets.<\/p>\n
\n\tThe shift is particularly visible across Saudi Arabia and the UAE, with wave of regional headquarters, investment banking teams, asset management businesses and senior executives relocating to the region.<\/p>\n
\n\tIn July, Deutsche Bank secured a regional headquarters license in Saudi Arabia, joining JPMorgan, Goldman Sachs, Morgan Stanley and others in expanding their presence in the Kingdom.<\/p>\n
\n\tThe move comes as Saudi Arabia steps up efforts to position Riyadh as the Middle East\u2019s leading business hub through its Regional Headquarters Program, which requires foreign companies seeking government contracts to establish bases in the Kingdom.\u00a0<\/p>\n
\n\tThe investment case is becoming increasingly difficult to ignore. Foreign investors recorded $1.6 billion in net purchases on the Saudi Exchange during the second quarter of 2026, making it the only GCC market to post net foreign buying during the period, according to Kamco Invest.<\/p>\n
\n\tStructural reforms reshape the Gulf\u2019s financial landscape<\/p>\n
\n\tExecutives and market specialists believe the Gulf\u2019s appeal today extends well beyond its sovereign wealth funds, reflecting years of structural reforms that have strengthened financial markets and improved the investment environment.<\/p>\n
\n\t\u201cThe Gulf\u2019s attractiveness is increasingly institutional rather than merely financial,\u201d Naman Sharma, partner at Kearney Middle East and Africa\u2019s financial services practice, told Arab News.<\/p>\n
\n\tHe said deeper domestic capital markets, greater participation by sovereign investors, predictable tax regimes, regulatory reforms and stronger financial infrastructure have fundamentally changed how international financial institutions view the region.<\/p>\n
\n\t\u201cThe Gulf is establishing itself as an important center of regional financial activity,\u201d Sharma noted.<\/p>\n
Naman Sharma, partner at Kearney Middle East and Africa\u2019s financial services practice.\u00a0<\/p>\n
\n\tThe transformation is becoming increasingly evident in Saudi Arabia\u2019s capital markets.<\/p>\n
\n\tAccording to the Capital Market Authority, assets under management more than doubled from SR612 billion\u00a0($163 billion) in 2020 to SR1.244 trillion by the end of 2025, while listed companies rose 89 percent to 392 and foreign ownership doubled to SR417 billion.<\/p>\n
\n\tThe UAE is experiencing similar momentum, with Abu Dhabi Global Market attracting 11 international financial institutions representing more than $9 trillion in assets, reinforcing its position as one of the region\u2019s fastest-growing financial centers.<\/p>\n
\n\tGlobal institutions expand beyond fundraising<\/p>\n
\n\tIndustry leaders say one of the biggest changes is that international financial institutions no longer view the Gulf primarily as a destination to raise capital. Increasingly, they are building permanent operations, managing portfolios and developing investment products from within the region.<\/p>\n
\n\t\u201cThe most important shift I observe\u2026 is that these countries are moving from being primarily a client and fundraising market for international financial institutions to becoming a place where they manufacture products, manage portfolios, operate regional businesses and deploy their own capital,\u201d Sharma told Arab News.<\/p>\n
\n\tHe pointed to firms including Franklin Templeton, BlackRock and Goldman Sachs expanding their operational presence in Saudi Arabia, arguing that Riyadh is increasingly becoming home to regional management, private wealth, portfolio construction and investment capabilities.<\/p>\n
\n\tThe UAE is witnessing a similar evolution. Sharma said Dubai International Financial Center now hosts more than 1,000 regulated financial firms, over 500 wealth and asset management companies, and more than 100 hedge funds.<\/p>\n
\n\tAbu Dhabi Global Market is home to more than 170 asset and fund managers overseeing around 250 funds, while assets under management grew 36 percent during 2025.<\/p>\n
\n\tFinancial firms build permanent regional teams<\/p>\n
\n\tThe Gulf\u2019s transformation is also reshaping how global institutions recruit talent, with banks increasingly relocating experienced professionals into the region rather than serving clients from overseas offices.<\/p>\n
\n\tNathan Ross Fox, head of investment management search at recruitment agency Aventus, said the change has accelerated significantly over the past five years.<\/p>\n
\n\t\u201cThe talent conversation has changed,\u201d Fox told Arab News.<\/p>\n
\n\t\u201cPreviously we have seen our clients service the region through EMEA deal teams based in London or Paris, sometimes New York.\u201d<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/08\/img_2238.jpg\")
Nathan Ross Fox, head of investment management search at recruitment agency Aventus<\/p>\n
\n\tThat model is now giving way to a much stronger local presence.<\/p>\n
\n\t\u201cTo capture the best of this market, we have seen our clients want bankers who are on the ground in Riyadh, Dubai and Abu Dhabi every day, not just flying in for face-to-face pitches,\u201d he said.<\/p>\n
\n\tPerhaps the clearest sign of changing perceptions, he added, is how international firms now classify the region.<\/p>\n
\n\t\u201cThe Middle East isn\u2019t spoken about as an \u2018emerging market\u2019 anymore,\u201d Fox said.<\/p>\n
\n\t\u201cIt\u2019s now treated as a core growth market.\u201d<\/p>\n
\n\tDiversified investment opportunities broaden the investment case<\/p>\n
\n\t\u00a0While sovereign wealth funds remain among the world\u2019s most influential investors, experts say they are no longer the sole driver attracting Wall Street firms to the Gulf.<\/p>\n
\n\tSharma said international financial institutions are increasingly drawn by expanding investment opportunities across logistics, power, utilities, artificial intelligence and digital infrastructure, alongside growing corporate financing requirements.<\/p>\n
\n\tHe added that Saudi Arabia is also expected to generate increasing investment opportunities in manufacturing, mining and tourism as Vision 2030 projects continue to advance.<\/p>\n
\n\tFox pointed to a similar trend, saying Saudi Arabia and the UAE are deploying significant capital into sectors such as technology, AI, infrastructure and energy with the objective of building entirely new industries rather than relying on traditional sources of economic growth.<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/08\/img_2240.jpg\")
Ugur Injaz, CEO of Injaz Co.Consulting<\/p>\n
\n\tFrom regional market to global financial center<\/p>\n
\n\tFor Ugur Injaz, CEO of Injaz Co.Consulting, the Gulf\u2019s growing importance reflects a structural shift in the global financial system rather than a temporary investment cycle.<\/p>\n
\n\t\u201cFive years ago, the Gulf, particularly Saudi Arabia and the UAE, was a destination for capital,\u201d Injaz told Arab News. \u201cToday it is competing to be a source of it.\u201d<\/p>\n
\n\tHe argued that sovereign investors\u2019 increasing focus on direct co-investment, regulatory reforms and stronger deal flow have created a competitive urgency for international financial institutions to establish permanent operations in the region.<\/p>\n
\n\t\u201cWe are witnessing a permanent operational migration,\u201d he said.<\/p>\n
\n\tInjaz believes the region is not \u201csimply replicating\u201d London or New York, saying: \u201cIt is building a parallel financial architecture with its own logic.\u201d\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"RIYADH: Global financial institutions are rapidly expanding across the Gulf as market reforms and economic transformation programs reshape…\n","protected":false},"author":2,"featured_media":814492,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101],"class_list":["post-814491","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/814491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=814491"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/814491\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/814492"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=814491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=814491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=814491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}