Saudi Arabia’s Ministry of Investment has granted HSBC a Regional Headquarters (RHQ) licence for its Capital Markets and Advisory business, bolstering the bank’s presence in the kingdom as it expands its investment banking operations across the Middle East.

HSBC said the new entity, HSBC Capital RHQ, will support its push to build on its position as one of the region’s leading investment banks, serving international clients and domestic growth. 

The move follows the bank’s review of its investment banking operations concluded in May, in which it committed to further investment in Middle East equity capital markets and M&A activity.

Welcoming the leading bank, Saudi Investment Minister Khalid Al Falih said the licence underscores the kingdom’s efforts to attract major global firms. 

"The Regional Headquarters licence reflects the kingdom’s commitment to fostering a competitive and business-friendly environment," he stated.

Faris AlGhannam, Chief Executive Officer of HSBC Saudi Arabia, will be serving as the CEO of HSBC Capital RHQ. 

Adam Bagshaw, HSBC’s Global Head of Capital Markets and Advisory, said the Middle East remains a key growth area for the bank. “Establishing a regional headquarters in Riyadh consolidates our expertise as we look to support clients in one of the world’s fastest-growing regions,” he said.

The award of the RHQ license follows HSBC’s decision earlier this year to base its regional investment banking leadership across the UAE and Saudi Arabia. 

In July, Mohammed Fannouch was appointed Co-Head of Capital Markets and Advisory for MENA and Turkey region, based in Riyadh, alongside Samer Deghaili in the UAE.

AlGhannam pointed out that Saudi Arabia’s market depth and sector diversity reinforced its role as a regional hub for capital markets. 

"With the formation of our Capital Markets and Advisory Regional HQ, we will be at the forefront of contributing to the Kingdom’s economic transformation," he added.

A major international investment bank operating in the Middle East, HSBC says it had led regional equity and debt capital markets league tables for four consecutive years. 

The bank has advised on 90% of jumbo IPOs in the region and managed more than $104 billion in bond and sukuk deals in 2024.

Its recent mandates include roles on key Saudi transactions such as Elm’s acquisition of Thiqah Business Services, a $245 million accelerated bookbuild for Rasan Information Technology, and Derayah Financial’s $400 million IPO. 

HSBC was the first Qualified Foreign Investor in Saudi Arabia in 2015 and has supported cross-border initiatives including Asia’s first Saudi-focused exchange-traded fund listed in Hong Kong.