STT Partners With Albilad Capital to Fortify Saudi Securities Market

State Street Corporation STT has entered a strategic co-operation agreement with Albilad Capital to support the latter’s securities services offerings in Saudi Arabia, reaching a milestone in its long-term investment and commitment to the Kingdom’s growing financial sector.

Albilad Capital is Saudi Arabia’s leading financial institution that specializes in securities services and asset management.

The agreement aligns with Saudi Arabia’s Vision 2030, which focuses on creating a diversified and resilient economy underpinned by a modern financial infrastructure. By integrating State Street’s global product suite with Albilad Capital’s deep local expertise, the partnership aims to enhance operational efficiency, improve market competitiveness and accelerate the development of the Kingdom’s capital markets.

Notably, the signing ceremony, held in Riyadh on Oct. 29, 2025, was attended by senior executives from both firms and other dignitaries, marking a new chapter in Saudi Arabia’s financial market development.

STT Aims to Deepen Presence in Saudi Arabia

State Street has been active in the Kingdom for more than 25 years, establishing local operations in 2020. The firm currently manages $127 billion in assets under custody and/or administration and $60 billion in assets under management for clients in the region.

This alliance sets the stage for future expansion. Oliver Berger, the head of strategic growth markets at State Street, described the agreement as “the first step in a long-term strategic relationship,” adding that it will pave the way for introducing additional investment services, including leveraging both firms’ ETF capabilities to attract foreign direct investment into the Kingdom.

Commenting on the partnership, Ron O’Hanley, the chairman and CEO of State Street, emphasized the firm’s intent to expand its presence and deliver world-class securities services in one of the world’s fastest-growing markets. He noted that the alliance would allow both companies to meet rising demand for sophisticated investment solutions, while helping the Kingdom advance toward becoming a leading global financial hub.

State Street’s Other Efforts to Expand Global Presence

STT has continuously been taking efforts to deepen its presence globally through buyouts and collaborations. It has acquired its long-standing partner, PriceStats, a top provider of daily global inflation data generated from digitally collected prices on millions of consumer products.

Last month, it acquired global custody and related businesses outside of Japan from Mizuho Financial Group, Inc. In May 2025, it collaborated with smallcase to cater to investors in India seeking global exposure, while in April, the company partnered with Ethic Inc. to offer customized investment solutions to institutional and financial intermediary clients.

Last year, State Street joined forces with Bridgewater Associates to boost its core alternative investment strategies, partnered with Apollo Global to enhance investors' accessibility to private markets, acquired a 5% stake in Australia-based Raiz Invest Limited, and partnered with Taurus and CF Global Trading.

Moreover, STT restructured the nearly 20-year-old European component of the International Financial Data Services LP joint venture (JV) arrangement in Luxembourg and Ireland, and consolidated its India-based operations to assume full ownership of its two JVs.

These efforts are expected to result in revenue and cost benefits for the company. Over the last four years (2020-2024), STT’s revenues witnessed a compound annual growth rate of 2.7%, with the upward trend continuing in the first nine months of 2025.

State Street’s Price Performance & Zacks Rank

STT shares have gained 24.7% in the past six months compared with the industry’s 13.2% growth.

Currently, State Street carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Partnerships by Other Finance Firms

Last month, Fifth Third Bancorp FITB entered a definitive merger agreement to acquire Comerica Incorporated CMA in an all-stock transaction valued at $10.9 billion. The transaction is projected to close at the end of the first quarter of 2026.

The impending acquisition serves as a strategic acceleration of FITB’s long-term growth plan, enhancing scale, profitability and geographic reach. By integrating Fifth Third’s retail and digital banking platforms with CMA’s strong middle-market expertise and attractive regional footprint, the merger enhances Fifth Third’s presence across high-growth markets.

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This article originally published on Zacks Investment Research (zacks.com).

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