The CEO of HSBC stated today that the bank maintains confidence in the economic prospects of the Gulf countries, even as the region and the broader Middle East prepare to confront the economic repercussions arising from the conflict in Iran.
George Hadiari remarked, “HSBC’s faith in the fundamentals of the Gulf Cooperation Council and its future remains unwavering,” marking the first remarks from an international banking leader regarding the escalating crisis.
Like several other international lenders, HSBC has aimed to expand its presence in the Gulf, emphasizing the region as a crucial component of its broader strategy to leverage global transactions and capital flows to enhance the bank’s overall profitability.
While HSBC does not disclose the specific contribution of the Middle East to its profits, Reuters’ calculations based on the company’s figures indicate that operations in the UAE and Saudi Arabia, which account for the majority of its regional activities, contributed five percent to the bank’s total profits annually over the past five years.
In a statement on Monday, Hadiari expressed, “HSBC remains confident in the Gulf Cooperation Council and the robustness and resilience of the region, believing it is promising in the long term. We still anticipate that the upcoming years will usher in stability, growth, and prosperity.”
During a conference call with investors on February 25, Hadiari noted, “The Asia-Middle East corridor has become a defined focal point for global growth,” adding that the UAE is one of the key markets in the bank’s strategy to enhance wealth management fees.