Kuwait Investment Company (KIC) Saudi Arabia and HSBC Launch Securities Lending Service
- Mohammed Al-Faris: Clients can generate income from Saudi stocks through a robust and carefully managed securities lending framework
- Faisal Al-Ghanim: Securities lending helps investors enhance portfolio efficiency and support market liquidity
Kuwait Investment Company (KIC) Investment – Saudi Arabia and HSBC Saudi Arabia announced today, Tuesday, 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 KIC Investment – 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 has witnessed notable growth in recent years, driven by increasing institutional participation and the continuous development and efficiency improvement 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. With growing international participation in the Saudi stock market, investors are increasingly turning to more sophisticated portfolio management solutions that enhance returns while maintaining long-term investment objectives.
HSBC Saudi Arabia was selected as a leading securities lending provider in the Kingdom 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 that KIC Investment – Saudi Arabia clients’ assets are managed within a tightly controlled lending framework, while maintaining operational efficiency and transparency.
Commenting on the service, Mohammed Hamad Al-Faris, CEO of KIC Investment – Saudi Arabia, said: “The launch of the 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 Saudi stocks they own, within a robust 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 allows 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 of HSBC Saudi Arabia, said: “Securities lending is a key component in enhancing the efficiency of capital markets, as it helps institutional investors improve 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 develop, 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.”
The partnership builds on HSBC’s longstanding commitment to developing the Kingdom’s capital markets. For over 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 global bank supported the first securities lending transaction in the Kingdom’s financial market, acting as custodian, lending agent, and borrower on behalf of a major regional asset owner. Thanks to this proven track record, HSBC Saudi Arabia is well-positioned to offer a robust and transparent program to clients as the market continues to grow.
The launch of the service reinforces Kamco Invest – Saudi Arabia’s commitment to delivering institutional-grade investment services that meet the evolving needs of professional investors. By introducing globally recognized capital markets solutions, such as securities lending, the company continues to expand its advanced investment capabilities, while contributing to the ongoing development of the Saudi capital market in line with Saudi Vision 2030.
