Reuters report that Goldman Sachs will acquire a stake in an investment banking subsidiary of Saudi Arabia’s largest lender, National Commercial Bank, the state-owned bank said on Sunday.
“Goldman Sachs and Al Ahli Financial Company intend to cooperate on a number of areas of activity inside the kingdom and also on areas of activity linked to the kingdom abroad,” National Commercial Bank (NCB) said in a statement after signing an initial accord with U.S.-based Goldman.
“The memorandum of understanding also provides for the participation of Goldman Sachs in the capital of Al Ahli Financial Company,” NCB said, without giving details.
Sami Abdou, a senior Al Ahli Financial manager, said the firm would have a capital of 1 billion riyals. NCB will keep a majority stake, he told Dubai-based Al Arabiya television, without elaborating.