SAB Invest, the investment arm of Saudi Awwal Bank, has launched a securities lending service for its clients and appointed JPMorganChase as its agent for the domestic equity business.
The mandate forms part of the firm’s strategy to expand the platform to include global assets. It marks its development as a full-service capital markets participant.
The capability is designed to allow clients to generate returns from their existing equity holdings. It also enables access to yield-generating opportunities across international markets.
Institutional equity expansion
SAB Invest selected JPMorganChase due to its local market experience, international capabilities, risk management framework, and technology infrastructure.
The operational framework helps the firm meet its fiduciary obligations, protect client assets, and manage lending returns for its institutional and high-net-worth client base.
The launch introduces institutional-grade securities lending infrastructure to the domestic equity market. It supports the broader development of Saudi capital markets as the country continues to attract foreign investment flows.
“Today’s announcement marks an important strategic milestone for SAB Invest and, most importantly, for our clients,”
said Majed Alqahtani, Chief Business Officer at SAB Invest.
“Securities lending is no longer a peripheral activity. It is a core component of a sophisticated portfolio management strategy, and it is one we are now positioned to deliver with institutional rigor.”
Aligning with financial reforms
Alqahtani added that the partnership will enable clients to generate yield from both their Saudi equity positions and their global portfolios, aligning with the financial reforms of Vision 2030.
JPMorganChase will deploy its global securities lending expertise and local presence to support the platform.
“We are proud to have been selected by SAB Invest as its securities lending agent at a time when Saudi Arabia’s capital markets continue their growth trajectory,”
said Harpreet Bains, EMEA Head Agency Securities Finance at JPMorganChase.
Featured image credit: Edited by Fintech News UAE, based on image by zetrum via Magnific
