David Hodgkinson, Group Chief Operating Officer, HSBC, told the Euromoney/DIFC annual conference that China and India would overtake the traditional target markets of Europe and the USA for Gulf investment within a decade, if current trends continue.
Citing economic and demographic data, as well as the bank’s own experience, Hodgkinson told the conference that the bank is bullish on what it calls the “East/East Opportunity”:
“China is growing at 10% per annum, and India at 8%, with both gaining an increasing share of world trade and investment flows. Companies and governments in these markets have a growing requirement for sophisticated financial solutions for capital raising, financial restructuring, and managing their growth. We predict that this pattern will continue, and that the Gulf will become a major investment partner for these markets.
Hodgkinson, who has held senior management positions in both the Middle East and Asia with HSBC, outlined the three key drivers of the demand for capital that will ensure the Gulf is able to become the investment partner of choice for the Asian economies:
• First, the abundant liquidity in the GCC will find Asian investment opportunities increasingly attractive. “We are already seeing some exciting deals being carried out
Investment Bankers See Huge Opportunity in Asia/2
by GCC investors into India and China, and we have no doubt this trend will grow exponentially,” he added.
• Second, the ongoing structural changes in India and China, coupled with developments and liberalisation in the Gulf countries, make these markets the natural focus for GCC investors.
• And third, the long historic and cultural links between these regions is an additional support for the East/East Opportunity, and for mutual growth, investment and co-operation.
“HSBC has its roots in Asia, and this year celebrates its 60th anniversary in the Middle East. Because of this, we are able to bring a unique perspective to our clients who are looking to take advantage of the demand for investment banking services that will thrive between these two regions.”
1. David Hodgkinson
David Hodgkinson is Group Chief Operating Officer of HSBC Holdings plc.
Mr Hodgkinson joined HSBC in 1969 and has worked in a wide variety of roles in Asia, the Middle East and Europe, including as CEO of HSBC in the Philippines, and the Head of Human Resources for The Hongkong and Shanghai Banking Corporation based in Hong Kong. In 1999, he was appointed Managing Director of The Saudi British Bank. He became Deputy Chairman and Chief Executive Officer, HSBC Bank Middle East Limited in 2003, and became Group Chief Operating Officer for HSBC Holdings in May 2006.
Mr Hodgkinson is a Director of HSBC Bank Middle East since 1999, Deputy Chairman of HSBC Bank Egypt SAE, and a director of The Saudi British Bank, Bank of Bermuda and Arabian Gulf Investments (Far East) Limited.
He was born in England in 1950, and is married and has two children.
2. HSBC Bank Middle East Limited
HSBC is the largest and most widely represented international bank in the Middle East. HSBC Bank Middle East Limited has 34 branches throughout the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait, Jordan, Lebanon, and the Palestinian Autonomous Area, including an offshore banking unit in Bahrain. This extensive regional coverage is strengthened by another member of the HSBC Group HSBC Bank Egypt SAE, and by its associated companies, The Saudi British Bank and British Arab Commercial Bank Limited. In addition to its Middle Eastern network, the Bank has a representative office in Tehran, Iran.
3. HSBC Corporate, Investment Banking and Markets
HSBC Corporate, Investment Banking and Markets (CIBM) provides tailored financial products and services to major government, corporate and institutional clients. Within client-focused business lines, Corporate and Institutional Banking, Global Investment Banking, Global Markets and Global Transaction Banking, CIBM offers a full range of capabilities, including foreign exchange, fixed income, derivatives, risk advisory, investment banking financing, investment banking advisory, payments and cash management, trade services, and securities services. Further details can be found at www.hsbcnet.com.
4. HSBC Holdings plc
HSBC Bank Middle East Limited has been a principal member of the HSBC Group since 1959. Serving over 125 million customers worldwide, the HSBC Group has some 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,738 billion at 30 June 2006, HSBC is one of the world’s largest banking and financial services organisations. HSBC is marketed worldwide as ‘the world’s local bank’.
