HSBC Holdings Plc has strategically reinforced its investment banking division within Saudi Arabia by appointing new leaders for its mergers and acquisitions (M&A) and equity capital markets (ECM) segments, positioning itself in a region experiencing a surge in financial transactions.
Mehdi Benabdallah has taken the helm as head of M&A within the kingdom, with Ramez Halazun stepping up as the head of ECM, as revealed by a recently surfaced internal memo.
The kingdom of Saudi Arabia, recognized as the Gulf’s largest economy, is attracting a plethora of investment banks that are eager to capitalize on deal-making opportunities. This comes as the nation initiates a colossal plan to diversify its economy beyond oil.
These key appointments coincide with the launch of a significant $12 billion secondary share offering by oil behemoth Aramco, with HSBC playing a pivotal role as a joint global coordinator. This deal stands as one of the most substantial equity offerings in the current times.
According to Bloomberg League Tables, HSBC emerged as the prior year’s premier arranger of equity offerings across the Gulf. The British financial institution’s notable involvements include the initial public offerings of Adnoc Gas Plc in Abu Dhabi and Ades Holding Co. in Riyadh, among others.
Last year, HSBC advanced its Saudi investment banking operations by naming new co-heads amidst a flurry of deal activities. Additionally, its wealth management division is actively seeking to hire top talent to serve the increasing number of ultra-wealthy individuals relocating to the Middle East.
Benabdallah has been part of HSBC since 2009, and Halazun joined the company shortly after in 2011. Both bankers made the move from Dubai to Saudi Arabia in the previous year.
While HSBC chose not to comment on the appointments, it’s noticeable that international firms are expanding their footprint in the kingdom. Goldman Sachs Group Inc., for instance, recently secured a Riyadh headquarters license, becoming the first Wall Street firm to do so. Securing such a license has now become a standard part of the procurement process for the Saudi wealth fund, which is valued at an impressive $925 billion.
Financial giants like HSBC and JPMorgan Chase & Co. have responded by ramping up their staffing in Saudi Arabia, bringing their workforce on par with their Dubai operations.