Securities lending in the Kingdom has experienced significant growth in recent years driven by increased institutional participation and continued improvements in market sophistication. The introduction of this service reflects the continued evolution of Saudi Arabia’s capital markets, with securities lending becoming a core component of institutional investment strategies. As international participation in the Kingdom's equity market grows, investors are seeking more sophisticated portfolio solutions to enhance returns while preserving long-term investment objectives.
The appointment of HSBC Saudi Arabia, a leading player in securities lending in the Kingdom, followed a comprehensive evaluation process that considered the bank’s strong domestic market presence, global securities finance expertise, advanced operating platform, and robust risk management capabilities. These strengths will help ensure Kamco Invest – Saudi client assets are managed within a highly controlled lending framework while maintaining operational efficiency and transparency.
Commenting on the launch, Mohammed Hamad Alfaris, Chief Executive Officer of Kamco Invest – Saudi, said, "The introduction of securities lending represents our commitment to offer value-added solutions to our clients. Beyond preserving long-term investment exposure, clients can now enhance portfolio returns by generating income from eligible Saudi equity holdings through a well-established and carefully managed lending framework.”
Alfaris added, “Through our partnership with HSBC Saudi Arabia, we bring together strong domestic market understanding, global capabilities in securities finance, and a disciplined operational model. This integrated platform allows us to deliver solutions aligned with the highest global standards to our institutional and private wealth clients."
Faris AlGhannam, Chief Executive Officer and Board Member, HSBC Saudi Arabia, said, “Securities lending is an important component of a well-functioning capital market, helping institutional investors enhance portfolio efficiency while supporting market liquidity. At HSBC we combine global securities finance expertise, robust risk management, and deep Saudi market insight to deliver best-in-class solutions that meet the evolving needs of investors in the Kingdom. As Saudi Arabia's capital markets continue to develop, we remain committed to supporting local, regional and international clients with innovative capabilities that create long-term value while operating within a strong governance and regulatory framework.”
This partnership builds on HSBC’s long-standing commitment to developing the Kingdom’s capital markets. For more than 70 years, HSBC has supported the growth of Saudi Arabia’s financial sector and has been at the forefront of facilitating foreign institutional investment. In 2021, the leading international bank helped support the Kingdom’s first on-exchange securities lending transaction, acting as custodian, agent lender and borrower for a large regional asset owner. With this proven track record, HSBC Saudi Arabia is well placed to deliver a robust, transparent program for clients as the market gains momentum.
The launch further reinforces the commitment of Kamco Invest – Saudi to providing institutional-quality investment services that meet the evolving needs of professional investors. By introducing globally recognized capital market solutions such as securities lending, the Company continues to expand its suite of sophisticated investment capabilities while contributing to the ongoing development of the Saudi capital market in line with Vision 2030.