As Saudi Arabia accelerates toward its Vision 2030 finish line, its race isn’t just about building futuristic cities or grand infrastructure — it’s about finding smarter ways to pay for them. And according to HSBC’s Middle East chief, the kingdom’s next big leap in financing could lie beyond traditional bank loans.
“Saudi Arabia will need alternative sources of funding to sustain this ambitious transformation,” said Selim Kervanci, the bank’s CEO for the Middle East, North Africa, and Turkiye. “Project bonds could be one of those solutions — bringing investors directly into the story of Saudi growth.”
Project bonds — a tool that lets investors fund specific ventures and get repaid from the project’s own cash flows — have yet to truly take root in the Middle East. But that may be about to change. As massive developments near completion and start generating revenue, the door opens for a new kind of capital market participation — one that could ease pressure on domestic banks and invite global investors to join the ride.
Saudi Arabia’s $2 trillion Vision 2030 program — reportedly 85% complete — is no small ambition. From the $500-billion megacity NEOM to thousands of other projects across energy, aviation, infrastructure, and transportation, the demand for capital is immense. Analysts expect Riyadh to borrow roughly $55 billion next year and $57 billion in 2026, with budget deficits anticipated through 2027 as oil prices level off.
HSBC has already been at the center of this financial transformation, taking part in 41 equity and debt capital market transactions worth more than $77 billion in the kingdom this year. Across the wider MENA region, bond issuance volumes surged 27% to $125.9 billion — the highest nine-month tally ever recorded, according to London Stock Exchange Group data.
The bank also guided the Saudi Real Estate Refinance Company, a PIF subsidiary, through the nation’s first residential mortgage-backed securities — a milestone that signals Saudi Arabia’s growing comfort with securitisation and structured finance. “We need to structure more of these transactions — not just for domestic investors, but in a way that draws international capital,” Kervanci noted.
That evolution, however, requires collaboration. HSBC has been working with regulators to strengthen the legal and risk frameworks necessary for such complex deals, while also educating local clients — many of whom still gravitate toward loans — about the advantages of tapping capital markets.
Large projects, Kervanci acknowledged, will still rely on traditional loans for cost reasons. “But as markets mature, pricing and investor appetite evolve. We’ve seen this play out globally — and Saudi Arabia is now reaching that stage.”
Leveraging its strong presence in Asia, HSBC is also drawing fresh capital from investors in that region who are increasingly eyeing Middle Eastern assets. “The appetite from Asia for projects in this region is growing fast,” Kervanci said.
The bank itself has been reconfiguring its global strategy to match this momentum. After trimming operations in Europe and the US, HSBC is doubling down on investment banking and advisory in the Middle East and Asia — betting heavily on sectors like technology, infrastructure, oil and gas, and telecom.
“We’re scaling up where growth lives,” Kervanci said, pointing to senior promotions, new hires, and expanded advisory capabilities in mergers, acquisitions, and debt markets.
In short, the shift is clear: Saudi Arabia’s transformation isn’t just being built on steel and sand — it’s being financed through imagination. Project bonds and securitisation may soon become the financial architecture behind Vision 2030’s concrete dreams.
