Dubai: Reliance Money, an India-based brokerage unit of the Reliance Anil Dhirubhai Ambani Group, has said it is entering the Saudi Arabian market in partnership with Bahrain's Riyada Consulting.
The joint venture is named Riyada Reliance Money (RRM).
Reliance Money said it has become the second Indian firm to offer financial services in Saudi Arabia, the largest financial market in the Gulf. Saudi Arabia is home to a large population of non-resident Indians (NRIs).
"This new venture will launch a range of services in Saudi Arabia, offering a cost-effective and efficient platform to transact in financial instruments to investors. This partnership would also utilise 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 Shaikha Dheya Bint Ebrahim Al Khalifa, president of Riyada management consultancy.
"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 the residents of Saudi Arabia. We already have our presence in Oman and Dubai and our presence in Saudi Arabia will further compliment our efforts to have a larger role in the region," Reliance Money chief executive officer Sudip Bandyopadhyay said in a joint statement.
Riyada Reliance Money will seek local regulatory approvals for launching its operations and also raising money from Gulf-based institutional investors for expanding its operations.
The company said it will offer brokering, corporate finance, advisory and asset management services.
"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 200 million Saudi riyals (about Dh200 million) in the first phase. Reliance Money, however, will retain management control post any dilution," Bandyopadhyay said.
The new company has already initiated discussions with some Gulf institutional investors and wealthy individuals for strategic participation in the new venture.
Saudi Arabia is the fourth country where Reliance Money will start its operations in less than a year of its decision to tap the overseas markets.
"We aim to generate 50 per cent of our revenues from overseas markets by 2012 and capture a bigger share of the record $19.5 billion invested in India last year by overseas funds," Bandyopadhyay said.