Foreign banks find the going tough in Saudi Arabia

[DUBAI] Local lenders in Saudi Arabia are dominating the market, prompting overseas banks to surrender their licences as they struggle to compete, the chief executive officer of Standard Chartered in the country said.

"International banks have found this market more challenging to find their edge and differentiate themselves enough to build a viable business," Boutros Klink, CEO of Standard Chartered Capital Saudi Arabia, said in an Aug 14 interview in Dubai. The bank is focusing its business on the kingdom's debt markets, he said.

Some international banks have started shrinking in Saudi Arabia even as the kingdom plans to open its US$577 billion stock exchange to direct international investment. Barclays Saudi Arabia cancelled its licence to conduct securities business in June, the same month that Goldman Sachs Group ended its licence for custody, underwriting and dealing as an agent.