Citigroup has won formal approval from Saudi Arabia’s Capital Market Authority to restart investment banking business in the kingdom.

An official of the US bank’s Saudi unit has told Reuters it has held its inaugural board meeting in Riyadh.

MEED reported in April 2017 that Citigroup Saudi Arabia was obtaining a capital markets license, enabling its return to the kingdom after a hiatus of almost 13 years.

Citigroup pulled out of Saudi Arabia after five decades in 2004 when it sold its 20 per cent stake in Samba Financial Group, reallocating capital to core investments.

In 2015 it won permission from the Saudi Arabian regulator to invest directly in the local stock market, the first step towards its return.

Last year, the New York-based organisation obtained a license that allows it to provide services such as investment banking, debt and equity capital markets, as well as securities research to its local and international institutional clients.

More than a dozen foreign banks that have licenses to operate branches in Saudi Arabia, are engaged in a stiff contest in recent times to win business emanating from Riyadh’s swift economic reforms.

Citi was among the banks invited to pitch for roles in the planned stock market listing of Saudi Aramco through an initial public offering (IPO).

Saudi Aramco has also appointed Citi to lead a $2bn financing arranged by Britain, guaranteed by the state-owned UK Export Finance.