Kuwait Finance House (KFH) Invest Saudi Arabia Launches Securities Lending Service

Kuwait Capital Investment Company (KACIC) Saudi Arabia and HSBC Saudi Arabia have announced their partnership to launch a securities lending service for investor clients in the Saudi stock market. The new service expands the range of investment solutions offered by KACIC Saudi Arabia, enabling clients to generate additional income from eligible securities held in their portfolios, thereby transforming long-term investments into an additional source of returns.

Securities lending activity in the Kingdom of Saudi Arabia has witnessed significant growth in recent years, driven by increasing institutional participation and the continuous development and efficiency improvements of the market. The launch of this service reflects the ongoing evolution of the Saudi capital market, where securities lending has become a core component of institutional investment strategies. As international participation in the Saudi stock market grows, investors are increasingly turning to more sophisticated portfolio management solutions that enhance returns while maintaining long-term investment objectives.

HSBC Saudi Arabia was selected following a comprehensive evaluation that considered the bank’s strong local market presence, its global expertise in securities lending, its advanced operational platform, and its robust risk management capabilities. These advantages will ensure the management of KACIC Saudi Arabia clients’ assets within a tightly controlled lending framework, while maintaining operational efficiency and transparency.

Commenting on the launch of the service, Mohammed Al-Faris, CEO of KACIC Saudi Arabia, said: “The launch of our securities lending service reflects our commitment to providing value-added solutions for our clients. In addition to maintaining their long-term investment exposures, clients can now enhance their portfolio returns by generating income from the shares they hold in the Saudi market, within a well-established and carefully managed lending framework.”

He added: “Through our partnership with HSBC Saudi Arabia, we combine deep understanding of the local market with global securities lending capabilities and a disciplined operational model. This integrated platform enables us to deliver solutions that meet the highest global standards for our institutional clients and private wealth management clients.”

For his part, Faisal Al-Ghanim, CEO and Board Member at HSBC Saudi Arabia, said: “Securities lending is a key component in the efficiency of capital markets, as it helps institutional investors enhance portfolio efficiency while supporting market liquidity. At HSBC, we combine global expertise in securities lending and risk management with deep knowledge of the Saudi market to provide best-in-class solutions that meet the evolving needs of investors in the Kingdom. As Saudi capital markets continue to evolve, we reaffirm our commitment to supporting local, regional, and international clients through innovative capabilities that deliver long-term value within a strong governance and regulatory oversight framework.”