Mitsubishi UFJ Financial Group Inc. is looking to hire in Saudi Arabia as the lender seeks to benefit from privatizations valued at more than $350 billion over the next five years.
¡°We are planning to start expansion in Saudi Arabia by hiring 20 people,¡± Elyas Algaseer, the bank¡¯s co-head in the Middle East and North Africa, said in an interview in Dubai. ¡°That will go up to 60 in 3 to 5 years in line with our expectations of the growth in business.¡±
MUFG, as the banking group is known, is set to become the first Japanese lender to start full banking operations in the world¡¯s biggest oil exporter after obtaining approval from the kingdom¡¯s central bank. The operator of Japan¡¯s biggest bank plans to open the branch in Riyadh as early as next year, Algaseer said.
Japanese banks are seeking opportunities in Saudi Arabia as the country pursues a plan to reduce dependence on oil and diversify its economy through public-sector restructuring and infrastructure investment. MUFG may help underwrite Saudi Arabian Oil Co.¡¯s planned share sale in 2018 as it holds a stake in Morgan Stanley, which was selected as lead underwriter with JPMorgan Chase & Co., the Nikkei newspaper reported in February. The sale could raise as much as $100 billion in what would be the world¡¯s largest initial public offering.
¡°Saudi privatization will play the main game in the region and reshape the kingdom¡¯s economy,¡± Algaseer said, adding that privatizations in the country could exceed $350 billion in about five years. ¡°These of course have large financing potential and financial institutions such as ourselves will be positioning to ensure that we are part of this transition process.¡±
MUFG, which currently manages its Saudi business from Dubai, was one of the lead arrangers on a $10 billion syndicated loan deal with the kingdom¡¯s government last year. The bank also helped Saudi Arabia raise $17.5 billion in the biggest-ever bond sale from an emerging-market nation last October.
Still, a Saudi-led standoff against Qatar ¡°has slowed the growth and diversification momentum since June,¡± Algaseer said. ¡°The geopolitical issues will continue to restrict the diversification efforts in the region in the short term. It is very important currently that the regional political situation gets clarified.¡±
Algaseer hopes that deals like Abu Dhabi National Oil Co., which is said to be considering raising as much as $7 billion from the debt markets, could ¡°open the gate for other transactions.¡±
¡°Before the end of the year, we could see many deals,¡± he said. ¡°We expect big deals to go through with many government, state-owned firms announcing and implementing privatization, M&A, structured financing and debt-financing deals.¡±
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.