Inv Bk Licence Saudi Arabia

HSBC Holdings PLC
21 November 2005


                  HSBC AND THE SAUDI BRITISH BANK TO ESTABLISH
                       FIRST INDEPENDENT INVESTMENT BANK
                                IN SAUDI ARABIA

The Saudi Arabian Capital Market Authority (CMA), the newly-established
regulator of the stock exchange and capital markets in Saudi Arabia, has given
its approval to HSBC and The Saudi British Bank (SABB) to establish the first
full-service, independent investment bank in the Kingdom of Saudi Arabia
licensed under the new Capital Market Law.

HSBC, through a wholly-owned subsidiary, will hold 60 per cent of the equity in
the new company and SABB, in which HSBC has a 40 per cent shareholding, will
hold the remaining 40 per cent.

The joint venture, to be known as HSBC Saudi Arabia Limited, will be established
as a limited liability company headquartered in Riyadh, with a share capital of
SAR50 million (US$13.33 million). Its formation is subject to obtaining an
investment licence from the Saudi Arabian General Investment Authority and a
commercial registration from the Saudi Arabian Ministry of Commerce and
Industry.

HSBC Saudi Arabia Limited will provide corporate finance and asset management
advisory services to corporations and institutions in Saudi Arabia as well as
investment advisory services to individual investors. In addition, the new
company will manage SABB's domestic and international equity brokerage and
security services businesses.

Its corporate finance units will provide a wide range of services related to the
issuance of initial public offerings, rights issues, private placements and
Islamic and conventional debt securities. The joint venture will also provide
project finance, privatisation, and merger and acquisition advice to a broad
range of clients.

Stephen Green, Group Chief Executive of HSBC Holdings plc, said: "This year
marks the 55th year of HSBC's continuous presence in the Kingdom of Saudi
Arabia, first through The British Bank of the Middle East and then through The
Saudi British Bank. We are optimistic about the long-term prospects for growth
in the Saudi Arabian economy and look forward to providing investment banking
and asset management expertise and products to the local market."

Sheik Abdullah Al-Hugail, Chairman of The Saudi British Bank, said: "We
recognise and appreciate the significant value added by HSBC to the capabilities
of The Saudi British Bank. We are pleased to be able to bring to our clients in
Saudi Arabia an even broader level of global expertise through the establishment
of this new investment banking vehicle."




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