Capitalizing on Growth: Exploring Securities Lending Potential in the Middle East

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The Middle East is currently undergoing a period of remarkable economic transformation, driven by robust diversification efforts, increased investments, and groundbreaking advancements in technology and infrastructure. Prominent nations such as the United Arab Emirates, Saudi Arabia, Kuwait, and Qatar are spearheading this transition, evolving from traditional oil-dependent economies into dynamic hubs for finance, technology, and tourism.

This shift is not only expanding the region's economic horizons but also creating a wealth of new opportunities in capital markets and catalysing the expansion of financial services. Amongst these services, securities lending is rapidly emerging as a pivotal aspect of the Middle East's financial landscape. As markets continue to mature and the regulatory environments evolve, a thorough understanding of securities lending becomes essential for investors and financial professionals striving to capitalize on these developments.

Therefore, this is a great opportunity for lenders and borrowers who are keen to learn more about these growing markets, but also for asset managers and asset owners who hold Middle Eastern assets and want to increase their revenue potential. If you would like to know more about our securities finance data and solutions for the region, please reach out to your prodcut specialist of sales contact.

Additional regional news from our dividend forecasting team:

Qatar begins interim dividends

• Following the Qatar Financial Markets Authority (QFMA) authorization to introduce the interim dividends, the Qatari companies will pay an additional dividend in calendar year 2024, leading to a significant increase of 31% to 30 billion Qatari riyals.
• Among the 13 companies listed in the MSCI Qatar index, nine have declared interim dividends alongside their half-year results. The banking sector has been the primary driver of these dividend announcements, with 45% of the approved interim dividends coming from this sector.
• Our projection estimates the dividends from MSCI Qatar constituent companies to decrease by 4% in fiscal year 2024, driven by the declining profitability of Qatar Water and Electricity Company QPSC.
• We project an 8% year-over-year increase in MSCI Qatar dividends for fiscal year 2025. This growth is anticipated to be fueled by double-digit dividend growth in the banking, utilities and capital goods sectors.

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.