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State Street Corporation (NYSE: STT) announced today that its wholly-owned subsidiary, State Street Saudi Arabia Financial Solutions, has successfully secured an upgrade to its license from the Capital Market Authority (CMA) in Saudi Arabia. The expanded license now includes Managing Investments and Operating Funds (MIOF), enabling the firm to offer fund administration services locally and significantly bolster its investment servicing capabilities within the Saudi market.

While State Street continues to serve its clients in Saudi Arabia through its global platform and established local operational footprint, the addition of fund operations to its MIOF license empowers the company to formally deliver fund administration services domestically. This creates a comprehensive ecosystem for investment services and reflects the surging demand for local asset management and investment solutions as the Kingdom continues to advance its capital markets in alignment with Vision 2030 objectives.

Oliver Berger, Head of Strategic Growth Markets at State Street, stated:

"This step represents a major milestone in our journey to support our clients in Saudi Arabia, as well as our global clients who continue to invest and expand their presence in the Middle East. By establishing the capability to manage and operate funds locally, we are reinforcing our position as a long-term partner for both local and global institutional investors, offering more efficient market access and advanced on-the-ground operational capabilities."

Global Operating Model The expanded license permits institutional investors, as well as asset managers and owners, to fully establish, operate, and manage funds within Saudi Arabia. This enhances operational efficiency, ensures greater alignment with local regulatory frameworks, and allows clients to leverage State Street's global operating model through its localized presence.

Reiner Kasch, Acting Head of State Street in Saudi Arabia and Bahrain, commented:

"Obtaining this license is a critical step, but our focus now is squarely on activating it to deliver tangible value to our clients. The new license enables State Street to build a scalable infrastructure for investment services, supporting the development of Saudi Arabia's asset management ecosystem and contributing to the accelerated growth of the Kingdom's capital markets and overall financial sector."

State Street has been serving clients in Saudi Arabia for over 25 years. The company formally established its local operations in 2020, followed by the inauguration of its Middle East and North Africa (MENA) regional headquarters in Riyadh. Adding fund administration to the company's licensed activities complements its existing custody and investment services, marking a pivotal moment in its long-term commitment to the Kingdom as one of its premier strategic growth markets.

The fund administration services to be provided by State Street in Saudi Arabia will encompass:

Fund accounting

Financial and regulatory reporting

Investment policy compliance monitoring

Tax reporting