“Khalijia Invest is proud to remain one of the operating investment companies with all its licenses in Saudi Arabia, and its commitment to serving the investment public is steadfast,” Hamad bin Ahmed Al Ameerya, the firm’s chairman, said in a statement.

Riyadh-based Khalijia, which counts Kuwait’s National Investments and Gulf Bank as shareholders, had decided to cancel the licenses of its asset management, brokerage and custody services, an e-mail to Khalijia staff, seen by Reuters showed.

But after meeting with the Capital Markets Authority (CMA) last week, Khalijia was allowed by the Saudi regulator to retain its licenses and operate with a lower capital base, a source familiar with details of the meeting said.

Investment firms operating in the kingdom have a stipulated regulatory capital requirement of SR50 million ($13.33 million).