Wall Street Sees Saudi Opportunities in Finance and AI
Big banks are leaning into Saudi Arabia. Citigroup opened a new regional headquarters in Riyadh. Barclays is returning after a decade away. At the Future Investment Initiative (FII) conference, Goldman Sachs' David Solomon called the kingdom a major growth market.
The signal is clear: capital, deals, and talent are moving where policy, liquidity, and national priorities intersect. For finance professionals, this is a live pipeline, not a headline.
Why money is flowing into the kingdom
- Vision 2030 spending is driving large projects across energy, logistics, healthcare, tourism, and infrastructure.
- The Public Investment Fund (PIF) is active across equity, credit, and strategic JVs, pulling in global partners.
- Capital markets reforms have boosted listings, liquidity, and institutional participation on Tadawul.
- AI and data-center buildouts are moving forward, supported by policy and enterprise demand.
- Licensing, ownership, and fintech frameworks have improved, making market entry more straightforward than a decade ago.
Where the deals are
- IPOs and privatizations: a steady queue of listings and spin-offs tied to national projects.
- Credit and project finance: giga-projects need structured funding, hedging, and long-dated capital.
- Alternatives: real assets, private credit, and PE co-investments alongside PIF and local institutions.
- Infrastructure and real estate: transport, utilities, logistics, and mixed-use developments.
- AI and cloud: model training, data centers, analytics, and sector-specific AI (energy, health, public services).
- Payments and fintech: licensing, partnerships with local banks, and embedded finance for national platforms.
Entry plays that work
- Build a real presence: RHQ in Riyadh secures proximity, hiring, and relationship flow.
- Re-enter via partnerships: distribution, local brokerage, and custody tie-ups reduce time-to-market.
- Co-invest with PIF: thematic vehicles and sidecar structures align incentives and speed approvals.
- Stand up AI joint ventures: attach use-cases to national priorities-energy optimization, supply chain, citizen services.
Risks to underwrite
- Regulatory and compliance: AML, sanctions, data localization, and cross-border data transfer rules.
- Geopolitics: scenario plans for sanctions, rates, and commodity volatility.
- Talent: experienced local hires are scarce; plan for training, mobility, and partnerships with local universities.
- Operating tempo: approvals can move fast once aligned; misalignment stalls everything.
- Localization rules: procurement, hosting, and content requirements can add cost if planned late.
Action plan for bankers, asset managers, PE, and fintech
- Map your RHQ case: revenue attach from existing clients, pipeline from national programs, and hiring plan.
- Prioritize two verticals where you have edge (e.g., project finance and private credit) and ship product within 90 days.
- Book meetings around FII cycles and with ecosystem anchors (PIF, Tadawul, MISA, major family groups).
- Stand up compliance early: data residency, model governance for AI, and sanctions workflows.
- Structure co-investment templates and fee mechanics now; don't negotiate from scratch per deal.
- Build an AI wedge: analytics for due diligence, portfolio monitoring, and credit risk-prove ROI on one pilot, then scale.
- Hire local rainmakers and pair with global product specialists; make a two-way bench, not a satellite office.
Bottom line
The capital is there, the projects are real, and the door is open. If you can bring differentiated product, local presence, and credible execution, Saudi Arabia will meet you more than halfway.
If you're building an AI toolkit for deal origination, risk, or operations, this curated list can help: AI tools for finance.
Your membership also unlocks:
