HSBC Saudi Arabia is placing a strong emphasis on innovation as it seeks to expand its services, according to the CEO of the bank. Faris Al-Ghannam, who helms the financial institution, recently outlined his company’s future direction and the economic potential within the Kingdom, highlighting the vast investment opportunities available.
Speaking at the third Saudi Capital Market Forum in Riyadh, Al-Ghannam emphasized the bank’s commitment to innovation, particularly in relation to the Saudi market, and its intention to build upon its current achievements.
Al-Ghannam discussed the bank’s strategic objectives, which include delving into different sectors of the Saudi market, with particular focus on the debt capital market and the Kingdom’s IPO market. He expressed a determination to advance technology and activate derivatives and future markets.
He pointed out that these sectors are a high priority for HSBC, as it looks to make a significant contribution in the near future.
Al-Ghannam highlighted Saudi Arabia’s impressive global economic performance, citing a nearly 8 percent growth in GDP for 2023, and emphasized the importance of this growth, which extends well beyond the energy sector.
The CEO also noted the remarkable increase in investment inflows into the Kingdom, with a growth of over 70 percent in the last three years. Despite global economic challenges, he reaffirmed Saudi Arabia’s robust economic position, attributing its resilience to sound financial policies and strategic investments.
Al-Ghannam pointed out the vast opportunities present in Saudi Arabia, particularly in sectors that promote sustained growth and long-term economic diversification.
He also praised HSBC’s involvement in the Saudi Capital Market Forum, noting the bank’s role in promoting dialogue and cooperation within the financial sector. He expressed satisfaction with the forum’s growth and the increased participation of international investors and corporations.
Discussing capital expenditure initiatives, Al-Ghannam explained Saudi Arabia’s Vision 2030 and the extensive CapEx program planned for the next six to seven years. He emphasized the crucial role of capital sectors in enabling these initiatives, especially in strengthening debt capital markets for funding transformative projects.
Al-Ghannam stated that capital markets are essential for delivering these programs and for fostering sustainable economic progress.
He reiterated HSBC’s pioneering role in the introduction of derivatives and futures markets, as well as the bank’s efforts in launching the first Saudi exchange-traded funds in Asia. HSBC continues to lead in financial innovation, promoting growth and diversification within the Saudi financial landscape.
Moving to environmental, social, and governance (ESG) topics, Al-Ghannam described HSBC’s central role in advancing sustainable finance and ESG practices within the Saudi market. He mentioned the bank’s active contribution in helping Saudi companies establish ESG frameworks and in facilitating green bond issuances, in alignment with Vision 2030 and the Saudi Green Initiative.
“For us globally, ESG and transition is one of our key focus areas,” Al-Ghannam stated, confirming HSBC’s dedication to furthering sustainable finance in cooperation with stakeholders.
In closing, Al-Ghannam expressed optimism about the future progress of ESG initiatives and sustainable finance both in Saudi Arabia and globally. He projected a rapid advancement in the ESG agenda, underscoring the positive impact of sustainable finance on inclusive growth and prosperity.