JEDDAH, 9 December 2005 — Credit Suisse Group, the second-largest financial service company in Switzerland, is entering the Saudi market by forming a joint venture with experienced Saudi partners in Saudi Swiss Securities. The Saudi partners are Olayan Financing Company, Ali Zaid Al-Quraishi & Brothers Company, Omran bin Mohammed Al-Omran & Partners Company, ABQ Investments Ltd., Mohammed Aba Al-Khail and Dr. Saleh Al-Omair. Credit Suisse will be represented on the board of directors and executive management committee of Saudi Swiss Securities. The new securities firm expects to start its full operation in the second quarter of 2006 from its office in Riyadh.
Credit Suisse and HSBC are the first two foreign banks to obtain local brokerage licenses from the Saudi Capital Market Authority (CMA). Credit Suisse representation in Saudi market will be partial since it is a minority partner in Saudi Swiss Securities. HSBC, in contrast, is establishing full-service, independent investment bank to be named HSBC Saudi Arabia Limited. The difference in the presence between the two banks in the Saudi market reflects the difference in their experience with the market. HSBC has a long financial history in the Kingdom as it has been operating for 55 years in the Saudi market through its joint venture Saudi British Bank (SABB). Joachim Straehle, member of Credit Suisse executive board and head of private banking international, however, mentions that his group has been building and understanding of the Middle East since the 1970s.
The Zurich-based Credit Suisse Group is a leading financial services company employing around 62,000 staff worldwide.
The group has three operating units as of 2004: Credit Suisse (commercial bank), Credit Suisse First Boston (investment bank), and Winterthur (insurance company). The three units are integrating under the “one bank program,” and starting from 2006 the three units will be re-branded as “Credit Suisse”. In September 2005, the group reported assets under management of $1.06 trillion. Credit Suisse is present in the Gulf market since December 2004 when it obtained a full banking license to provide banking services in Dubai International Financial Center (DIFC).
In addition, Credit Suisse was a founding member of Dubai International Stock Exchange (DIFX).
