Lazard Inc has secured a regional headquarters licence from Saudi Arabia's Ministry of Investment, sources familiar with the matter told BNN.

The move would make it the latest Wall Street firm to comply with the kingdom's push for foreign companies to base their Middle East operations there or face exclusion from the market.

The move by the New York-based investment bank follows similar steps taken by Goldman Sachs Group Inc in May and Japan's Mizuho Financial Group Inc in June, as financial institutions respond to Saudi Arabia's ultimatum on establishing regional bases in the country.

Lazard declined to comment when contacted.

The Saudi government announced regulations in 2021 requiring firms to have a regional headquarters in the kingdom, with at least 15 employees including executives overseeing other countries, to be eligible for state contracts. These rules came into effect this year.

Lazard has been expanding its presence in Riyadh, appointing Wassim Al-Khatib as chief executive officer of its advisory business for Middle East and North Africa in January 2023.

This followed the appointment of Saudi stock exchange chairperson Sarah Al-Suhaimi as the chair of the unit.

Other financial firms, including Rothschild & Co and Moelis & Co, have opened offices in Riyadh to tap into the region's deal flow, though they have not yet secured headquarters licences.

The Saudi government has described the headquarters programme as an effort to limit "economic leakage" - a term used for state spending that benefits firms without a substantial presence in the country.