HSBC Saudi CEO sees strong medium- and long-term investment prospects in KSA

This reflects the strong medium- and long-term investment opportunities in the Kingdom, he added.

AlGhannam said the market reacted positively to the Capital Market Authority’s (CMA) proposal to open the main market to all foreign investors.

He said that the proposed reform will drive expansion in two key areas - boosting Saudi Arabia’s weighting in global emerging markets and attracting capital inflows of up to $10 billion.

Secondly, many Saudi companies previously fell outside the scope of foreign investor interest due to ownership limits, a restriction that will now ease, unlocking new avenues for strategic and long-term investments.

AlGhannam noted that the tangible impact of the decision will become evident in the coming quarters, once it is implemented and index weightings are revised.

Commenting on current market performance, the CEO noted that the secondary market experienced a temporary liquidity dip amid portfolio repositioning by some investment institutions. However, the initial public offerings (IPOs) and debt issuance markets remained highly active, underscoring the sustained investment momentum in the Saudi economy.

The Saudi economy is witnessing a realignment of financing priorities, with a focus on the most viable projects - a development viewed as a healthy sign that enhances the efficiency of resource utilization and available liquidity.

AlGhannam expects the coming period to see growth in new financing products, including infrastructure funds and private credit, which will enhance the resilience of the Saudi economy and market in dealing with future cycles.

HSBC recently led a successful mortgage securitization deal in cooperation with the Saudi Real Estate Refinance Company (SRC), the first of its kind in the Middle East, which will set a model for expanding the local securitization and innovative financing markets.

AlGhannam emphasized that the Kingdom currently tops the list of the most attractive markets for international investors, thanks to the economic transformation programs within Vision 2030, adding that regular reviews and course corrections within the strategic programs further reinforce investor confidence.

According to an HSBC survey covering more than 4,000 global executives and decision-makers, eight in 10 respondents plan to increase trade or investment with Saudi Arabia over the next five years, and 60% intend to do so within the next six months.

Only 14% expressed concern about potential impacts from global economic shifts — far below the over 50% levels seen in other regions, underscoring confidence in the stability of Saudi Arabia’s business environment, AlGhannam said.