Jeddah — Bahrain-based Gulf International Bank converted its Saudi operation into a locally incorporated bank with SR7.5 billion capital, as the lender looks to boost its presence in the Kingdom.

The bank’s Saudi arm will be owned equally by GIB and Saudi Arabia’s Public Investment Fund, according to a statement.

This is the first time that a foreign bank in the Kingdom has become locally incorporated.

It will be headquartered in the Eastern Province with branches in Riyadh and Jeddah.

Abdulla Bin Muhammad Al-Zamil, the Chairman of GIB Saudi Arabia, said, “The establishment of GIB Saudi Arabia is an important milestone in the implementation of the bank’s strategy, which remains focused on the expansion of its service offering and position as a leading digital bank and it is expected to contribute positively to enhanced performance and profitability.”

GIB Chief Executive Officer Abdulaziz Bin Abdulrahman Al-Helaissi will be executive director and CEO of the Saudi business.

GIB launched Meem, an online Islamic bank in Saudi Arabia in 2015 as it moved into retail banking. — Agencies