ZURICH – UBS AG said Tuesday that Saudi authorities have conditionally approved the Swiss bank’s plans to set up operations in the kingdom.

The bank said it planned to begin operating in Saudi Arabia by the end of 2008 pending final approvals from the Saudi investment authority and the ministry of commerce.

UBS will focus its Saudi operations on investment banking, wealth and asset management.

UBS also said it had applied for a banking license in the Gulf state of Qatar.

Switzerland’s largest bank has suffered heavy losses over the past year that have slashed more than two-thirds off the value of its shares.

Subprime-related writedowns and outright losses of about CHF 38.4 billion (USD 37.4 billion) have forced the bank to seek new ways to maintain its position as one of the world’s major financial institutions.

[AP / Expatica]