[ I N D E P T H | M I D D L E E A S T ]
“ The interconnectedness of these markets is driving fresh investment flows and expanding the scope of capital markets in the region.”
ROCIO ECHAGUE, HEAD OF SECURITIES SERVICES, MENA, HSBC investments, allocating $ 82 billion in 2023 and an additional $ 55 billion in the first nine months of 2024. They are focusing more on emerging markets, particularly in Asia and Africa, with substantial investments in countries like China and India. This isn’ t just about oil money moving east – it’ s about structured capital flows into asset classes that were once niche, reflecting a more diversified economic partnership between the regions. This trend is also playing out in capital markets, where active ETFs have been gaining traction, while sovereign investors are pouring billions into fixed income. Chinese asset managers, too, are looking at the Middle East with renewed interest. In a key development, China approved its first ETFs investing in Saudi equities in June 2024, signalling a strategic effort to strengthen financial ties with the region. Rocio Echague, head of securities services, MENA at HSBC, highlights a major shift in how China is engaging with the region: " We see a conscious push from Chinese brokers to obtain trading and clearing licenses across MENA where permitted. This aligns with increasing activity between Asia and the Middle East. The interconnectedness of these markets is driving fresh investment flows and expanding the scope of capital markets in the region." This wave of capital is also driving a record-breaking IPO spree. In 2024, the GCC IPO market remained firm despite global volatility, posting its strongest year yet. According to PwC, there were 53 listings raising a total of $ 13.2 billion – a 25 % increase from the previous year. The UAE led in total proceeds, while Saudi Arabia took the lead in sheer volume, with 15 Tadawul IPOs and 27 Nomu listings. " The GCC IPO market remained
38 Global Custodian Spring 2025