Barclays has opened an office in Riyadh, returning to Saudi Arabia's financial market after an 11-year absence. The British lender announced the move Monday, one day after a Houthi attack struck the financial district housing its new office. The bank also named Majed Al Hassoun chief executive and head of investment banking at Barclays Capital Saudi.
The office sits in the King Abdullah Financial District, or KAFD, where Barclays plans to expand its local work with clients. Barclays described Saudi Arabia as a major Middle East capital market and said the office would further strengthen its local presence. Its launch follows Saudi regulatory approval for investment banking and global markets activities. The opening comes as attacks on infrastructure and disruptions to oil exports put pressure on the kingdom's economy.
Barclays sought to cancel its securities business in Saudi Arabia in June 2014. At the time, the bank was pulling back from several markets under then chief executive Antony Jenkins. That wider retreat followed the 2008 financial crisis and focused resources on the lender's core operations.
The bank has since renewed its interest in the kingdom. In 2025, it secured a regional headquarters there, ahead of the Riyadh office opening. Saudi Arabia has urged international companies to base their Middle East headquarters in the country when seeking business with state entities.
More recently, Saudi Arabia's Capital Markets Authority granted Barclays an operational license for investment banking and global markets services. The lender appointed Al Hassoun to lead its Saudi business as it established a physical presence in KAFD. Al Hassoun will lead local operations and its investment banking activities. Group chief executive C. S. Venkatakrishnan said the office would help Barclays connect Saudi clients with its international operations.
Sunday's strike targeted the financial district in Riyadh, including offices belonging to Saudi Aramco. Falling debris caused minor damage, but the incident resulted in no deaths or injuries. Barclays announced its new office the following day.
The security problems extend beyond Riyadh's business district. Houthi attacks on major Saudi airports in October killed more than a dozen people. The strikes also disrupted flights and forced changes to the country's calendar of international events.
Organizers postponed Saudi Arabia's flagship Future Investment Initiative conference until 2027 following the attacks. The disruption came as the conflict involving Iran continued into its ninth month. The closure of the Strait of Hormuz has also affected the kingdom's crude exports and public finances.
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Saudi Arabia recorded a third-quarter budget deficit of 84 billion riyals, equivalent to USD 22.4 billion, according to the Finance Ministry. The gap widened from 34 billion riyals in the preceding quarter. Disrupted oil exports reduced income from the kingdom's main revenue source, while government spending rose.
Can Saudi Arabia maintain its dealmaking pace while attacks and disruptions to oil shipments strain its finances? Investment figures show that major capital commitments continued during the first nine months of 2026. The Public Investment Fund deployed USD 14 billion over that period, according to Global SWF.
Among regional sovereign wealth funds, only Abu Dhabi's Mubadala Investment Company deployed more capital over those nine months. The figures come amid Saudi Arabia's efforts to widen its economy beyond oil under Crown Prince Mohammed bin Salman's Vision 2030 program. The program began after Barclays had withdrawn from the Saudi market.
For Barclays, the return aligns with the expansion of Saudi capital markets under that program. In its Monday statement, the bank described the kingdom as a major part of its broader Middle East strategy. Venkatakrishnan also linked the Riyadh opening to investment in regional staff and closer service for Saudi clients.
Barclays has returned to Saudi Arabia with a Riyadh office, regulatory approval and new local leadership. The opening follows Houthi attacks that disrupted airports, events and the capital's financial district. Meanwhile, falling oil export revenue has widened the kingdom's budget deficit, although sovereign investment activity continues under Vision 2030.