State Street Corporation (NYSE:STT) today announced its fully owned subsidiary, State Street Saudi Arabia Financial Solutions, has upgraded its license to a Managing Investment and Operating Funds (MIOF) license from the Capital Market Authority in Saudi Arabia, enabling the firm to offer local fund administration services in Saudi Arabia and further strengthen its in-country investment servicing capabilities.

While State Street has long supported clients in Saudi Arabia through its global platform and existing capabilities in the Kingdom, the addition of the operating funds component of the MIOF license facilitates the firm to formally offer fund administration services locally, creating a fully integrated end-to-end investment servicing model in Saudi Arabia. This development reflects growing demand for local asset servicing capabilities as Saudi Arabia continues to expand its capital markets under its Vision 2030 transformation agenda.

“This is a significant step in how we support our clients in Saudi Arabia, as well as our global clients as they continue to invest in and expand their presence across the Middle East,” said Oliver Berger, head of Strategic Growth Markets at State Street. “With the ability to manage and administer funds locally, we are strengthening our position as a long-term partner to both global and local institutional investors, providing enhanced market access and on-the-ground capabilities in the region.”

The expanded license enables institutional investors, asset managers and asset owners to establish, operate and service funds entirely within Saudi Arabia, benefitting from streamlined operations, enhanced alignment with local regulatory requirements and access to State Street’s global operating model delivered on the ground.

“Obtaining the license is an incredibly important step, but now we have to focus on how we deploy this for client outcomes,” added Rainer Kasch, interim head of the Kingdom of Saudi Arabia & Bahrain at State Street. “This new license enables State Street to provide scalable investment servicing infrastructure to Saudi Arabia’s asset management ecosystem, supporting the continued growth of the Kingdom’s capital markets and broader financial sector.”

State Street has served clients in Saudi Arabia for more than 25 years and established local operations in the Kingdom in 2020, followed by the launch of its Middle East and North Africa regional headquarters in Riyadh. The addition of fund administration to its licensed capabilities complements its existing custody and investment services offering and represents an important milestone in the firm’s long-term commitment to Saudi Arabia as a strategic growth market.

State Street’s fund administration services in Saudi Arabia include fund accounting, financial and regulatory reporting, investment compliance monitoring and tax reporting.