Bank of China has been approved by Saudi Arabian authorities to open a branch in the kingdom, in yet another move towards further internationalization.
Saudi Arabia’s cabinet approved the Chinese lender’s license, according to a «Reuters» report citing a tweet from the state news agency «SPA».
Bank of China joins a wave of Chinese firms seeking to expand in Saudi Arabia, its close strategic ally and top oil supplier. Saudi Arabia is undergoing major reforms to diversify the economy away from energy in a grand strategy called «Saudi Vision 2030». Four years ago, rival lender, Industrial and Commercial Bank of China, launched its first branch in Riyadh.
Capitalizing on Saudi Arabian opportunities aside, the branch launch marks another step towards for China towards further internationalization through its financial entities. In December last year, Bank of China launched its first branch in Romania through the capital of Bucharest.
