Saudi firm Khalijia operating with all licences

Saudi investment firm Khalijia Invest said it is operating with all its licences in the kingdom after Reuters reported last week that the firm plans to shut down most operations due to a cash crunch. "Khalijia Invest is proud to remain one of the operating investment companies with all its licenses in Saudi Arabia, and its commitment to serving the investment public is steadfast," Hamad bin Ahmed al-Ameerya, the firm's chairman, said in a statement.

Riyadh-based Khalijia, which counts Kuwait's National Investments and Gulf Bank as shareholders, had decided to cancel the licenses of its asset management, brokerage and custody services, an email to Khalijia staff, seen by Reuters showed. But after meeting with the Capital Markets Authority (CMA) last week, Khalijia was allowed by the Saudi regulator to retain its licences and operate with a lower capital base, a source familiar with details of the meeting told Reuters. Investment firms operating in the kingdom have a stipulated regulatory capital requirement of 50 million riyals ($13.33 million).