The Saudi Ministry of Finance and the National Debt Management Center announced on May 7 that they have signed an agreement with HSBC, making it a primary dealer in the government’s local debt instruments. HSBC joins six other international institutions—BNP Paribas, Citigroup, Goldman Sachs, J.P. Morgan, Societe Generale, and Standard Chartered Bank—as well as ten local institutions including Saudi National Bank (SNB), Saudi Awwal Bank (SAB), Bank AlJazira, Alinma Bank, AlRajhi Bank, Albilad Capital, AlJazira Capital, AlRajhi Capital, Derayah Financial Company, and Saudi Fransi Capital.
This move is part of the Financial Sector Development Program strategy to help achieve the objectives of Saudi Vision 2030 by strengthening financial sector institutions and advancing the financial market. The ministry said this step highlights the role of the National Debt Management Center in enhancing access to local debt markets by diversifying its investor base to ensure sustainable access to the secondary market and support its development.
Recent efforts have resulted in dual inclusion in both the JP Morgan Emerging Markets Government Debt Index and Bloomberg Emerging Markets Local Currency Government Bond Index. According to officials from the ministry and NDMC, this will contribute to increasing the presence of Saudi debt instruments within global investment portfolios while also enhancing liquidity in secondary markets and raising international competitiveness.
Applications for subscription in the primary market for government local debt instruments are submitted through appointed primary dealers on a scheduled monthly basis. These dealers receive applications from investors who wish to participate.
