UBS has become the latest investment bank to be given the green light to set up operations in Saudi Arabia, as the oil-rich nation seeks to eclipse Abu Dhabi and Dubai as the hub of financial activity in the Middle East.

UBS has received approval from the Saudi Arabia's Capital Markets Authority to commence securities business, and will now establish an office in Riyadh from which it will offer investment banking, wealth management, fixed income sales and execution, and asset management services, according to a statement.