Published: February 01, 2011
Despite the huge business opportunities that exist in Saudi Arabia, the country remains widely misunderstood. In fact, Saudi Arabia is a very attractive place to do business, but until recently, there have been few organisations with the local presence, expertise and market commitment to help companies take advantage of these opportunities. As the most substantial economy in the Middle East, with an established financial infrastructure, the Kingdom has proven highly resilient to the economic crisis. Furthermore, with its vast reserves of natural resources, financial wealth and the largest consumer base in the region, Saudi Arabia has considerable potential for both multinational companies seeking to expand their activities in new regions, and for domestic companies too. We recognised that Saudi Arabia would continue to grow in importance for our multinational clients, and that the local market needed the support of a global bank with the scale and expertise that J.P. Morgan possesses. Consequently, it was a logical and exciting progression of our business to expand our operations here.
The strategic expansion plans we are undertaking now are simply an extension of the gradual evolution the bank has undergone in Saudi Arabia for many years. We have been working in the Kingdom for nearly 80 years, and in 2004, we were granted a full banking licence. There are two licences in Saudi Arabia, one for commercial banking, and one for investment and securities firms. J.P. Morgan is the first US bank to be granted both licences, enabling us to deliver a comprehensive range of services across a full spectrum of corporate and financial institutional customers. Over the following four years, we built up our presence and range of services steadily. In 2009, after the immediate financial crisis was over, we publicly announced our strategic decision to accelerate our global expansion plans. Introducing a full service branch presence in Saudi Arabia is a top priority.
Our expansion strategy is divided into two major phases. During the first phase, we have introduced Treasury, Money Market and FX services to clients in Saudi Arabia, combining our deep understanding of the Kingdom with our global product breadth and financial strength. We provide support in Arabic language, in the local time zone and we adhere to the local working week. Furthermore, in addition to the six GCC currencies, our services cover USD, EUR, and GBP. We therefore can now fully support a treasurer-to-treasurer dialogue and deal with day-to-day money movements. Simultaneously we have introduced the same capabilities in Bahrain allowing us to service clients in the wider region.Later in 2011, we will be offering full local banking services, including accounts, payments, receipts and electronic banking, therefore becoming a fully-fledged local, as well as international bank. Our focus continues to be on delivering a consistent and unrivalled client experience, a comprehensive product offering, and fostering long-term relationships with clients. Ultimately, our goal is to help clients realise their own business objectives inside the Kingdom and globally.[[[PAGE]]]
Making it easier for our clients to do business is the cornerstone of our strategy globally. Clearly, different types of clients have different needs, so we need to be adaptable in the way that we work with each organisation, and continue to develop solutions that meet our clients’ evolving challenges. For example, companies in all industries and of all sizes need to finance their activities and reduce trade risk, so we deliver full trade financing alternatives, including Saudi-derived guarantees, letters of credit and alternative forms of financing under local law, where appropriate.
We have been delighted by what can only be described as a phenomenal response from clients and prospects alike, who warmly welcome J.P. Morgan’s expanded service offering. Both domestic and multinational organisations recognise the specific advantages that working with the bank offers, with access to our global network, and our capabilities as the largest USD bank globally. This last credential is proving to be a critical one for companies in Saudi Arabia. With one of the strongest balance sheets in the world, companies of all types have welcomed the ability to work with, and invest with, a stable banking partner with a strong credit standing and long-term commitment to the market.
Making it easier for our clients to do business is the cornerstone of our strategy globally.
Becoming a full service local bank in Saudi Arabia, in addition to our international capabilities, has different implications depending on the type of organisation. Multinationals headquartered outside the region can find it daunting to launch or expand their activities in Saudi Arabia, given the different business and consumer culture, regulations and financial landscape. We have found that clients are reassured not only by J.P. Morgan’s trustworthy reputation, but also by the consistent client service standards that the firm promotes worldwide and of course, the clear commitment that the firm shows to clients and markets through its ongoing expansion programme. For domestic companies the strength of J.P. Morgan in USD processing combined with our ability to support cross-border cash management, trade, and counterparty risk requirements, means that they now have a trusted banking partner with the leading-edge capabilities on their doorstep. Following a period that has been characterised by insecurity and uncertainty, we are finding that organisations of all types in Saudi Arabia are deriving considerable confidence in the presence, commitment and capabilities of a bank they can trust to support them in the long term.
How Thought Leadership Can Reduce the Cost of Sales by Patrik Havander, Havander & Partners A focused attention on the costs incurred by the global sales and marketing processes is becoming increasingly important for corporate banks and their transaction banking departments. While the client/bank relationship remains vital, research has shown that in fact relationship selling […]
