The launch of BlomInvest-Saudi Arabia is part of an expansion plan by BlomInvest Bank. In 2010, “the bank is eyeing to expand to another Arab market; the Jordanian market,” said Osseiran.

BlomInvest Saudi Arabia will benefit from two main advantages, according to Osseiran; “its partnership with major Saudi investors, and its ability to play the mediator role to attract Saudi investments to countries like Egypt and Syria and vice versa.”

Blom received the approval to set up the new firm from the Saudi Capital Market Authority in January 2008. The delay in launching the KSA subsidiary is due to the setting up procedures which take a long time, said Osseiran. “We had to set-up the office, recruit people, legalize the residency status of foreign employees, and finalize other legal requirements,” he said.

Osseiran said that the company currently employs a staff of 15 employees.

BlomInvest will hold a 50 percent stake in the KSA-affiliate while its parent company, Blom Bank will hold a ten percent stake. Saudi investors, Al Fawzan Holding Company and Al-Muhaidib Holding will hold a 15 percent stake each. Abdel Aziz al Saghir Corporation for Commercial Investments and Abdel Salam Al-Akil Company will own an equal five percent stake each.

The new firm will offer services that include investment advisory, setting up funds, management of Initial Public Offerings, arranging deals, and other investment banking services.