HSBC Middle East Securities granted license by ESCA to trade on ADSM and DFM

HSBC is the first global bank to trade directly on the UAE Bourses

International institutions and retail investors to be offered direct access to UAE Bourses

DUBAI 5th March 2008

HSBC's UAE brokerage arm, HSBC Middle East Securities (HMES), has received its final license from Emirates Securities and Commodities Authority (ESCA) to operate as a broker on the UAE's stock exchanges, and will commence trading for institutional investors this month. The company, set up to trade on the Abu Dhabi Securities Market (ADSM) and the Dubai Financial Market (DFM), will offer brokerage services to retail investors later this year.

With this license, and the imminent final approvals of the UAE's two domestic markets, HSBC will become the first global bank to trade on the UAE's exchanges directly.

"The Middle East's capital markets are becoming increasingly important to institutional investors around the world, especially at such challenging times in other international markets," said Neil Foster, Head of HSBC Global Markets for the Middle East and Chairman of HMES. "As the largest and longest established bank in the region, HSBC is delighted to break new ground by being the first international bank to be granted a license to trade on the UAE's stock exchanges."

HSBC is already a broker-member and sub-custodian of the Dubai International Financial Exchange (DIFX). It also offers sub-custody services on the ADSM and DFM, as well as nine other regional bourses, and this service will continue to be provided by the bank's specialist sub-custody operation. HSBC also has the largest multi asset class research capabilities on the ground covering key sectors and companies in the UAE and the wider region.

Paul Cooper, Head of Equities for Central Europe, Middle East and Africa at HSBC and member of Board of Directors of HMES, added: "HSBC has developed a leading brokerage business in the UAE servicing local and international institutional clients.  The establishment of HMES means that a major player in the UAE's markets is now a licensed broker in its own right, we believe this to be crucial in providing first class brokerage capabilities to our clients.  This development will be highly positive in raising the profile of the region, and is a further demonstration of our commitment to the UAE and the development of the region's markets."

-Ends-

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 37 branches throughout the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait, Jordan, Lebanon and the Palestinian Autonomous Area, including an offshore banking unit in Bahrain.  In addition to the branch network the Bank maintains representative offices in Tehran, Iran and Tripoli, Libya. 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, British Arab Commercial Bank Limited, and HSBC Saudi Arabia Limited.

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Tim Harrison 
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mobile: +971-50-657-9920.
Email: tim.harrison@hsbc.com

© Press Release 2008