Reliance Money and Riyada Consulting launches new company in Saudi Arabia

With this Reliance Money becomes the second Indian corporate to start operations and offer financial services in Saudi Arabia - the largest financial market in the Gulf and also having the largest population of NRIs in the region.

This announcement was made by Mr. Sudip Bandyopadhyay, Director & CEO of Reliance Money and Her Highness Shaikha Dheya Bint Ebrahim Al Khalifa, President of Riyada Consulting.

'We are extremely happy to partner with Reliance Money. This new venture will launch a range of brand new set of services in Saudi Arabia offering a cost-effective and efficient platform to transact in financial instruments to investors. This partnership would also utilize the expertise of Reliance Money in providing enhanced investment tools to a large section of population, who have not been able to use these services earlier,' said HH Shaikha Dheya Al Khalifa.

'This is our first international initiative where a local company has been formed in any overseas market and we are delighted to offer our range of financial services for residents of Saudi Arabia. We already have our presence in Oman and Dubai and our presence in SA will further compliment our efforts to have a larger role in the region' said Mr. Bandyopadhyay.

RRM will be seeking local regulatory approvals for launching its operations and also raising money from Gulf Institutional investors and HNI's for expanding its operations.

The company shall obtain membership of the Saudi Arabian Stock Exchange, after obtaining the Capital Market Authority (CMA, Saudi Arabia) approval, The company would be offering broking, corporate finance, advisory, custody & asset management services in the local market.

'We plan to have a significant footprint in the region and our operations in the region will involve a sizeable investment. We will be seeking regulatory approvals and would also be looking at strategic dilution of equity to Institutional investors in the Gulf region for raising approximately Saudi Riyal 200 million in the first phase. Reliance Money, however, will retain management control post any dilution', said Mr Bandyopadhyay.

The new company has already initiated discussions with some Gulf Institutional Investors and HNI's for strategic participation in the new venture.

Saudi Arabia is the fourth country where Reliance Money will start its operations in less than one year of its decision to tap the overseas markets.

It is the first Indian company to have received an 'in-principle approval' for setting up a branch and offering investment advice in the Sultanate of Oman.

Besides Oman, it has forayed into UAE and Hong Kong and plans to expand its operations in over 15 countries spread across Europe (London), North Africa, the Middle East and South East Asia by 2009.

'We aim to generate 50 pc of our revenues from overseas markets by 2012 and capture a bigger share of the record $19.5bn invested in India last year by overseas funds,' said Mr. Bandyopadhyay.