State Street has strengthened its presence in the Middle East after securing regulatory approval to administer investment funds in Saudi Arabia for the first time.

The investment firm has obtained a Managing Investment and Operating Funds licence from Saudi Arabia’s Capital Market Authority, enabling it to offer local fund administration services in the Kingdom, the company announced on Monday (29 June).

The approval marks an expansion of State Street’s operations in Saudi Arabia, with it working in the region for 25 years and establishing a Middle East and North Africa regional headquarters in Riyadh.

“This is a significant step in how we support our clients in Saudi Arabia, as well as our global clients as they continue to invest in and expand their presence across the Middle East,” said Oliver Berger, head of strategic growth markets at State Street.

State Street, which manages $5.6tn (£4.2tn) in assets, said the development reflects “growing demand for local asset servicing capabilities” in Saudi Arabia and underlines its long-term commitment to the Kingdom as a strategic growth market.

“With the ability to manage and administer funds locally, we are strengthening our position as a long-term partner to both global and local institutional investors, providing enhanced market access and on-the-ground capabilities in the region,” Berger added.

The move comes as a growing number of alternative asset managers expand their presence across the Middle East by opening regional offices.

In April, Barings opened an office in Abu Dhabi following the launch of its Dubai office in 2024, while Bain Capital selected Abu Dhabi as its regional hub.

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