HSBC accelerates Asia-MENAT trade connectivity through strategic partnerships: Selim Kervanci

Annual two-way goods trade between Asia-Middle East is projected to more than double to over $1.9tn by 2035, noted Selim Kervanci, CEO, MENAT at HSBC. GCC-Emerging Asia trade is on track to reach $682bn by 2030 (at 7.1% per year), and Gulf-China trade is set to grow from $225bn in 2023 to $325bn by 2027, surpassing the Gulf’s trade with Western economies. From June 2023 to June 2024, Middle East sovereign wealth funds have invested $7bn in China – a five-fold increase year-on-year (y-o-y)."Our 160-year heritage in Asia and over 130-year presence in MENAT, gives us the expertise and reach to help execute meaningful connections. We are accelerating Asia-MENAT trade connectivity through strategic partnerships. Last week, HSBC Hong Kong signed MoUs with Chinese firms PCI Technology Group and Meetsocial in Qatar and Kuwait during a recent HKTDC-led mission, supporting their expansion into GCC markets,” Kervanci said. He said the Asia-MENAT corridor is entering a transformative phase as supply chains diversify and regional partnerships deepen. HSBC is investing in digital trade, sustainable finance, and sector expertise to help clients capture new opportunities and navigate challenges.The bank’s brand strength, global network, more than 130-year regional legacy, and deep client trust provide a strong competitive edge in facilitating these flows across this corridor.It brings significant and accelerating opportunities across capital markets, wealth management, and a wide range of sectors, from infrastructure and energy to technology and healthcare. As trade, investment, and capital flows deepen between the two regions, businesses and investors are increasingly seeking partners with deep local insight and global connectivity.HSBC, with its strong presence across both Asia and MENAT and its universal banking capabilities, is uniquely positioned to support clients in capturing these opportunities."According to our research, MENAT could see the average pace of growth rise to above 3.5% this year, up 1.4 percentage points on last year’s average. This should lift MENAT GDP to almost $4tn by the end of 2025, up more than 40% on its pre-Covid-19 level.The size of the Gulf’s giga project pipelines are estimated to be worth approximately $3tn, and let’s not forget – MENAT is home to four of the world’s 10 largest sovereign wealth funds – that’s a significant concentration of global wealth within this region,” Kervanci said. The region will continue to attract strong inbound and outbound capital flows by deepening local markets, advancing regulatory reforms, and positioning itself as a global investment hub at the crossroads of Asia, Europe, and Africa.Despite these opportunities, challenges persist, including the need to adapt to evolving regulatory environments, economic and geopolitical uncertainties, and the need to build sustainable and resilient supply chains.HSBC is well positioned to support its clients in addressing these challenges by leveraging its international expertise, investing in digital platforms, and fostering partnerships that support clients’ ambitions in this dynamic corridor.He noted MENAT is a key growth region for HSBC and a profit accelerator beyond its two home markets – UK & HK."We are aligned with our global ambition to be Number 1 in Corporate and Institutional Banking (CIB) and be the bank of choice in International Wealth and Premier Banking (IWPB). "We are investing in our people, in technology, and in expanding what we can offer here. If there is one region that we will continue investing in when it comes to transaction and institutional banking business, it is the Middle East.”Kervanci noted, "Last week we announced the creation of a refocused capital markets and advisory business, building on our competitive strengths and creating a more comprehensive product offering to clients on the private side. The aim is to strengthen the bank’s global focus on debt financing, as well as strategic advisory in Asia and the Middle East. Over the next three years, we will also continue to invest in our international wealth business to meet the needs of affluent customers, including our Private Banking clients in Qatar."We have the products and skills required to serve the global banking needs of international corporate clients, particularly in transaction banking.”He said privatisation programmes are a key growth engine for MENAT governments and institutions, and HSBC continues to lead. "We acted on 90% of all jumbo IPOs of over $1bn in the Middle East and led half of all equity raised on Middle East capital markets since 2021. We are the only bank to have topped the Middle East League Tables for ECM and DCM activity in four consecutive years and led eight out of the 13 largest international IPOs in 2024.HSBC continues to play an instrumental role in thought-leadership in Qatar’s transition to net zero ambitions – we have contributed towards the development of sustainable finance frameworks for the Ministry of Finance, Qatar Financial Centre and Al Rayan Bank to name a few."We were part of landmark transactions that include QNB’s inaugural green bond issuance, State of Qatar’s debut green bond issuance, green financing for Rosewood Hotel (owned by Qatari Diar) in London and advising Nebras Power in its 49% investment in the windfarm renewables project in Australia."Most recently we participated in the green term loan facility for Qatar Holding, KPI ESG linked repo for Al Rayan Bank and the sustainability linked facility for Qinvest,” Kervanci said. HSBC has deep-rooted heritage in Qatar that dates to 1954, and today we are the largest international bank, custodian to over nearly 90% of foreign institutional investor assets in Qatar, with a comprehensive investment banking platform, and the only full-service onshore and offshore private banking capability."Our 70-year history in the country is the foundation for ongoing growth in the future, and we are committed to supporting Qatar’s private sector development and economic diversification.”He said Qatar’s economy is anchored by its well-established balance sheet strength, and the recent energy sector investment is set to bring a fresh surge in LNG production, export volumes and budget revenues, while driving growth across key sectors.The planned 85% expansion of LNG output will re-establish Qatar as the world’s leading producer. Qatar Investment Authority is the world’s 8th largest sovereign wealth fund with assets over $526bn, and a mandate to create long-term value for the country and future generations through international and domestic investment initiatives.The country is actively welcoming international investments to grow its private sector, while exploring the potential of emerging industries, such as technology, clean energy, manufacturing, tourism and sports."We remain confident of Qatar’s near and long-term economic prospects, and our growth story in Qatar is aligned directly to the country’s economic transformation. We capture more than 90% share of foreign investors at the Qatar Exchange (custody) and more than 50% share of multinational corporates business in Qatar. Many of our milestone achievements over the past seven decades are the product of combining local expertise and global connections to deliver unique banking solutions."Our offering is comprehensive and ranges from credit and lending solutions to global trade, payments, markets and advisory solutions, designed to meet the evolving needs of large family groups and mid-market enterprises. Our international footprint enables us to support international subsidiaries of Qatari private businesses in all markets globally where HSBC has presence.At the same time, we help Qatari private businesses manage the banking needs of their joint ventures with inbound multinational businesses,” Kervanci added.