HSBC has secured a new foothold in Saudi Arabia’s fast-expanding debt market after being named an International Primary Dealer by the Kingdom’s Ministry of Finance and the National Debt Management Center (NDMC).
The designation allows the banking giant to serve as a bridge between overseas investors and Saudi government debt instruments denominated in local currency — a market that has increasingly drawn global attention as the Kingdom pushes deeper into its economic transformation agenda.
The announcement came alongside a visit to Saudi Arabia by HSBC Group CEO Georges Elhedery, who met clients and financial stakeholders amid growing international interest in the Kingdom’s investment landscape.
Faris AlGhannam, chief executive and board member of HSBC Saudi Arabia, said the country’s domestic debt market has evolved into a significant component of emerging market investment strategies. He noted that stronger international participation is helping diversify local issuances while improving liquidity in the secondary market.
International primary dealers play a pivotal role in opening Saudi Arabia’s debt market to foreign institutions. Their responsibilities include facilitating access to government bond auctions and enabling global investors to participate in local-currency sukuk and bond offerings.
HSBC already maintains a strong presence in the Kingdom through SAB, its long-standing strategic banking partner in which it holds a 31% stake. SAB was previously appointed as a local primary dealer in 2018.
Nabeel Albloushi, HSBC’s head of markets and securities services for the Middle East, North Africa and Turkiye region, described the appointment as a sign of rising global demand for Saudi debt exposure. He said the bank’s international distribution network positions it to connect both regional and international investors with Saudi government securities more effectively.
Saudi Arabia continues to rely heavily on sovereign sukuk and bond issuances to finance its borrowing needs in the domestic market. NDMC figures show the Kingdom’s outstanding sovereign debt portfolio reached SAR1.519 trillion by the end of 2025, with domestic debt accounting for roughly 62% of the total.
Foreign participation in Saudi local-currency debt has also accelerated sharply. Data from late 2025 showed overseas ownership of SAR-denominated sukuk climbing to 12.8%, a significant jump from 4.5% recorded less than a year earlier.
