Saudi Arabia has all the necessary ingredients to become a great economic power and a key financial center in the region, said Walid Khoury, CEO, HSBC Saudi Arabia. Besides oil wealth, Saudi Arabia has a favorable demographic structure and its policy to invest in the country's infrastructure, healthcare and education the Kingdom is poised to become a great economic power, he said. He pointed out that Saudi Arabia is already a member of G20 and has been playing an instrumental role in fixing the international financial system “and hence it would be only natural that the Kingdom should occupy its deserved place as the key financial center in the region.” Khoury was speaking at a joint press conference Monday in Riyadh to announce a renewed partnership with Oxford Business Group (OBG), an international publishing, research and consultancy firm to produce yearly report on the Kingdom's economic activity. Joseph Kissick, OBG editorial manager, Saudi Arabia was also present. Khoury and Neslihan Aydagul, OBG country director exchanged documents of renewed partnership to publish HSBC report on Saudi Arabia economic activity for 2010 sometime in January 2011. The HSBC Report-Saudi Arabia 2010 besides interviews with leading decision-makers in the public sector, economists and insightful research articles the report will introduce new chapters on sectors such as mining, agriculture and environment among others. “It will be a true reflection of the Saudi economy strengths and its future development,” said Khoury. He said despite changed trading pattern the Saudi stock market has been performing with more strength and stability in the recent times. He further said since equal access to share trading granted to non-resident foreign institutions and individuals during the past several months, HSBC Saudi Arabia has enjoyed the trust of the local market and its most prominent actors. “In advisory, equity capital markets, debt capital markets, project and export finance and asset management we have maintained our leading position through the years,” he said. The pace of foreign investment in Saudi Arabia-quoted companies has been picking up noticeably, despite various challenges and difficulties facing financial markets elsewhere in the world, Khoury said. Foreign investment in companies quoted on the Saudi Stock Exchange (Tadawul) has been gathering momentum, he said. While replying to a question he said there may one or two cases but the overall capital market scenario has been quite satisfactory. “There would have been some difficulties and delays but bad debt is behind us,” he said. Khoury said HSBC Saudi Arabia Limited, a wholly-owned subsidiary, holds 60 percent of the equity in the new company and SABB, in which HSBC has a 40 percent shareholding, will hold the remaining 40 percent. Capital Market Authority (CMA), regulator of the stocks exchange and capital markets, has given approval to HSBC and SABB to establish the first full-service, independent investment bank in Saudi Arabia licensed under the new Capital Market Law.
