The UK-headquartered bank announced that the office, located in the city’s financial district, is part of its plans to expand its business in the region.

Barclays boss C.S. Venkatakrishnan said the new office would strengthen the bank’s ability to support clients in the region and “reaffirm our commitment to Saudi Arabia’s future”.

The move comes as a number of banking giants have been forced to scale back their operations since the start of the US-Iran war earlier this year. London-headquartered Standard Chartered told staff in its Dubai offices to work from home in March as hostilities spilled across the Middle East.

Citigroup told staff to evacuate as the conflict grew, while HSBC boss Georges Elhedery closed the bank’s branches in Qatar following an increase in strikes.

The UK Foreign Office has advised against all but essential travel to parts of Saudi Arabia because of the war in Iran. The UK government’s advice warns: “The wider context in the Middle East remains deeply unpredictable and the risk of sudden escalation is high.”

Last month, the Houthis, a military group in Yemen, launched missiles and drones at King Khalid International Airport, 22 miles north of Riyadh. The UK government added that the airport “continues to be targeted and remains at risk of further attacks. Further attacks against airports as well as disruption and cancellations are very likely.”

Meanwhile, the FTSE 100 rose on hopes of an end to the war in Iran after US President Donald Trump lost the midterms to the Democrats and announced that further strikes were “highly unlikely”. However, investors and analysts have remained cautious.

US Secretary of State Marco Rubio has said there was no breakthrough in talks.