The Barclays CEO highlights the bank’s strategic focus on expanding investment banking services in Saudi Arabia and the Middle East, leveraging regional growth and sustainability initiatives, while cautiously optimistic about the US economy and vigilant on credit risks. He also emphasizes the transformative role of AI in enhancing operations, the importance of stable market conditions for deal-making, and the need for supportive UK government policies to sustain the financial sector’s growth.
In the interview, the Barclays CEO discusses the bank’s renewed commitment to Saudi Arabia, highlighting their long-standing presence in the Middle East for over 130 years. Barclays is in the process of establishing its regional headquarters in the King Abdullah Financial District and is actively working to obtain the necessary investment banking licenses. The CEO emphasizes the strong UK-Saudi relationship and Barclays’ focus on providing global investment banking services rather than competing in retail banking, aiming to facilitate foreign investment and liquidity in the Saudi economy.
Regarding the Middle East’s role in Barclays’ growth strategy, the CEO notes the region’s increasing investment activity, including IPOs, equity-linked business, and M&A. Barclays has been involved in significant transactions such as the debut green bonds in Paris, reflecting the kingdom’s growing sovereign debt issuance and sustainability initiatives. Wealth management is also expanding, driven by regional wealth growth and migration to hubs like Dubai, where Barclays supports clients in wealth preservation and growth across generations.
Turning to the broader global economy, the CEO expresses cautious optimism about the US economy, noting continued strength despite some uncertainties like tariffs and the recent government shutdown affecting data availability. He acknowledges the “k-shaped” economic recovery, where higher-income groups benefit more, but highlights that consumers are generally conservative, improving their balance sheets and increasing savings. Barclays remains vigilant about credit risk, especially in light of recent fraud cases and the long credit cycle, emphasizing the need for careful lending practices.
On market dynamics, the CEO sees stable interest rates and credit spreads supporting positive momentum in deal-making and M&A activity, partly driven by technological changes such as AI. He discusses how AI is fundamentally transforming Barclays’ operations by improving business processes and empowering employees rather than replacing jobs. The bank is focused on selective and patient investment in AI to ensure meaningful returns and sustainable integration into their workflows.
Finally, the CEO touches on the upcoming UK budget, expressing hope that it will continue to support the financial services sector, which is vital to the UK economy and its global trade role. He praises the current government’s positive stance toward private sector and banking interests, suggesting a collaborative approach between the government and financial institutions to foster growth. While cautious about policy specifics, he underscores the importance of a supportive regulatory environment for the banking industry’s future.