HSBC gets Saudi licence for capital markets business

• Bank gets regional headquarters approval
• Licence is part of Vision 2030
• Riyadh aiming to increase population

Saudi Arabia’s investment ministry has granted HSBC a regional headquarters licence for its capital markets and advisory business.

The new entity, HSBC Capital RHQ, will strengthen the bank’s regional position, supporting both international clients and domestic growth, the lender said in a statement.

“The Middle East is an important growth region for HSBC, where we are continuing to invest in areas of strength and competitive advantage to support our clients,” said Adam Bagshaw, global head of capital markets and advisory at HSBC Holdings.

HSBC moved to base its investment banking leadership across the UAE and Saudi Arabia this year. 

Mohammed Fannouch was appointed co-head of capital markets and advisory, Middle East, North Africa and Turkey to be based in Riyadh in July. Samer Deghaili has co-led the regional investment banking business from the UAE since 2020.

Faris Al Ghannam, CEO of HSBC Saudi Arabia, will also serve as the CEO of HSBC Capital RHQ.

HSBC said it has acted on 90 percent of all major IPOs in the Middle East, led half of all equity raised on Middle East capital markets since 2021 and acted on more than $104 billion of bond and sukuk offerings in 2024.

The bank holds a 31 percent stake in Saudi Awwal Bank and a 51 percent stake in HSBC Saudi Arabia for investment banking.

In October 2024 HSBC expanded its office in Riyadh’s King Abdullah Financial District.

Further reading:

• Foreign banks descend upon Saudi Arabia’s new landscape
• Saudi Arabia exceeds 2030 target for regional HQs
• Lenovo plans Riyadh HQ as part of $10bn Saudi strategy

In January investment minister Khalid Al Falih said global companies opening regional headquarters in Saudi Arabia have exceeded the Vision 2030 target.

The regional HQ programme is part of plans to make Riyadh one of the world’s 10 largest city economies by 2030 and increase its population to 20 million from its current 7 to 8 million.

Companies under the scheme are exempt from corporate tax for 30 years. They also benefit from relaxed requirements for Saudisation – the programme to increase employment of Saudi nationals – and work permits for the spouses of company executives.