Saudi Arabia signs MoU with HSBC to promote sustainable investments
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Saudi Arabia signs MoU with HSBC to promote sustainable investments

Saudi Arabia signs MoU with HSBC to promote sustainable investments

The agreement covers the identification and promotion of sustainable investments in the kingdom

Saudi Arabia’s Ministry of Investment has signed a Memorandum of Understanding (MoU) with the HSBC Group to promote sustainable investment opportunities for the kingdom.

The MoU, signed at the Future Investment Initiative conference in Riyadh, covers identification and promotion of sustainable investments in the country for domestic and international investors as well as overseas for Saudi companies. It would also entail supporting public and private sector entities in climate transition and the environmental, social and governance (ESG) agenda.

The agreement, which is effective immediately, envisages the creation of an ecosystem of partners in the areas of sustainability and ESG that would exchange information and ideas on sustainable and ESG investment issues and, subject to relevant regulatory requirements, potential investment opportunities in the kingdom.

The Minister of Investment, Khalid Al-Falih, said: “I welcome today’s agreement, which is further proof that the kingdom’s ambitions to become a global sustainable investment destination is on track. This agreement is leveraging on the longstanding historical relationship between the Kingdom and HSBC and will help us unlock the tremendous Green investment opportunities in Saudi Arabia. Through the vast network of a global player like HSBC we want to attract global private sector capital into the kingdom, and realise the ambitions of Vision 2030, as they have been recently underpinned in the National Investment Strategy and the Saudi Green Initiative”.

“HSBC is committed to helping lead the transition to net zero and this Memorandum of Understanding is another important step in meeting that goal. This collaboration will see us promote sustainable investment opportunities and investment initiatives in the Kingdom to our clients, and support leading Saudi Arabian companies to access opportunities with global strategic and financial investors, especially Asian investors,” added HSBC Group CEO, Noel Quinn.

HSBC has committed to align the carbon emissions of its portfolio of customers – to the Paris Agreement goal to achieve net zero by 2050 or sooner. To support customers in their transition to lower carbon emissions, it aims to provide up to $1 trillion of financing and investment globally by 2030. The bank also aims to be net zero in its operations and supply chain by 2030.

Saudi Arabia has also launched a number of sustainable initiatives. Earlier this year, the kingdom launched two new green initiatives as part of efforts to combat climate change.

Read: Saudi Crown Prince announces two massive green initiatives to combat climate change

Meanwhile, Saudi British Bank became the first Saudi Arabian institution to make a green deposit, with the funds kept at HSBC in the UAE to be used solely for financing green initiatives.

Read: Saudi British Bank makes kingdom’s first green deposit to finance sustainable initiatives

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