Daniel Howlett (right), Regional Head of Commercial Banking for the MENA and Turkey, HSBC; and Elie Maroun El Asmar, Head of Commercial Banking in Qatar, speaking to The Peninsula. Pic: Salim Matramkot/The Peninsula
DOHA: The region’s legacy bank HSBC is very much excited over the emerging opportunities available in the region and Qatar. The bank, which has a robust pipeline in Qatar on business perspective and in deals, is looking to support innovative, high growth companies and projects in the country.
Daniel Howlett, Regional Head of Commercial Banking, Middle East, North Africa & Turkey, HSBC said the bank is positive on Qatar. “The upcoming Free Economic Zone is going to be a big story for Qatar.
The project is expected to attract regional and international trade businesses in a big way. HSBC is very much well-positioned from a financing perspective in the Free Zone –related businesses. The countdown for 2022 has begun. As a long-standing Bank in Qatar, HSBC is receiving strong positive vibes from the clients,” Daniel told The Peninsula.
One of the reasons why HSBC is optimistic on the region is because of infrastructure investment — an estimated $2trillion projected spend, he added.
HSBC, as an international bank, is not going to compete head to head with domestic banks. “There is enough room for HSBC in international context. Being an international bank with global network, we have some competitive advantages in this fast growing market,” Daniel said. As an example, there are 400 registered British companies operating in Qatar.
HSBC can work with these companies in the UK and help them as they come to Qatar.” Our job is partly to support domestic Qatari companies as they grow internationally, but separately channeling those flows to the companies that are interested to come to Qatar.
In fact, we can offer a two-way support. We can support the domestic companies doing businesses with the UK and the international companies which are willing to come to Qatar.” The country has huge growth potential in the SMEs and MMEs (Mid Market Enterprises). Oil and gas prices will eventually trickle down to the SMEs and MMEs. “We are seeing credit appetite from every player in this market. HSBC will be lending higher in volumes over the next five years. Sector wise, HSBC sees growing credit appetite for construction, infrastructure, energy and health care sector in Qatar.
The market is also looking to develop the higher education sector. We want to be part of this Qatar growth story”, said Elie Maroun El Asmar, Head of Commercial Banking in Qatar.
On HSBC’s performance in the region, Daniel said the commercial bank, which includes trade finance, cash management and capital financing, reported profit of $199m in Mena in 2017 and profit of $6.8bn for the commercial bank globally. The HSBC has seen some strong balance sheet growth in some countries. The overall numbers are really encouraging.
“Turkey has got an incredibly dynamic growing young population. It has got its own position, geographically and economically; and increasing its growth internationally.
We are optimistic on Turkey.” There are wider global challenges. Potential trade war between the US and China can reverse the projected global growth. But this region has stability to grow and develop regardless of wider global economic problems that may arise.
