Barclays Confirms Commitment to Middle East Expansion Despite Iran War

Barclays is moving ahead with its plans in Saudi Arabia, despite the war in Iran, Barclays Group Chief Executive C.S. Venkatakrishnan said Thursday (April 16).

The bank is seeking a banking license in Saudi Arabia and is preparing to open a regional headquarters in the country later this year, Venkatakrishnan said in an interview with Bloomberg TV.

“Those plans are in place, and we remain as committed as ever to the Middle East,” he said.

Barclays had left Saudi Arabia more than a decade ago but returned to the country last year, Bloomberg reported Thursday.

Saudi Arabia and the United Arab Emirates (UAE) have been working to de-risk themselves from oil dependence by diversifying their economies, Venkatakrishnan said.

“The attractiveness of the UAE, the strength of the Saudi economy, will continue to be strong,” Venkatakrishnan told Bloomberg TV. “I think investors will appraise those risks that are happening now, but I think the sooner this war comes to an end, the easier that statement is to make.”

Asked if the turmoil around the war in Iran could impact the large initial public offerings (IPOs) that are planned for this year, Venkatakrishnan said that is unlikely.

“Not in a structural sense,” he said. “It could affect timing, you know, do you go this week or a month later. But the companies you’re talking about—let’s just take one of them, SpaceX—these are remarkable companies that have been built offering important, real products to the global economy, and the capital they’ll get from an IPO is meaningful.”

Barclays announced in October that it was strengthening its presence in the Middle East after gaining a provisional Capital Market Authority license in Saudi Arabia, which paved the way for the bank to begin investment banking and global markets activities, and securing premises in Riyadh to open an office in 2026.

The bank was already operating in the UAE and Qatar, it said at the time in a press release.

“Expanding our Investment Bank capabilities in the Kingdom is a significant milestone for us as we continue to grow our regional footprint in key markets,” Venkatakrishnan said in the release.

The Independent reported in October that Barclays left Saudi Arabia about 11 years ago at a time when a former chief executive was cutting thousands of jobs, exiting “non-core” businesses and focusing on regions where it had a greater competitive advantage.