The boom in infrastructure development, housing and education in Saudi Arabia has led the financial institutions to expand their businesses in the region to tap growth in the oil-rich Gulf Arab region, according to media reports.
StanChart obtained a capital markets license in Saudi Arabia, last year, but a full banking license would enable the bank to offer a variety of services to the growing Saudi population.
The bank, which applied for a license from the central bank more than a year ago, is waiting to obtain the banking permission, according to media reports.
The US-based bank reported more than three-quarters of its profit in Asia and posted its ninth consecutive year of record earnings in 2011 due to the strong growth in Hong Kong and Singapore.
The Saudi banking sector is expected to post higher revenue in 2012, fuelled by higher loan growth and fee income and falling provisions for bad loans, according to NCB Capital.
