KUWAIT, 15 February 2005 — HSBC Bank Middle East Ltd., a unit of global bank HSBC, has won initial clearance to open a branch in Kuwait, paving the way for a third foreign bank to operate in Kuwait, the central bank said.
Central Bank of Kuwait Governor Sheikh Salem Abdulaziz Al-Sabah told state news agency KUNA that approval was granted on Sunday to the unit of Britain-based HSBC, which needs final ratification by the Council of Ministers.
“The central bank is now busy studying some applications from other foreign banks,” Sheikh Salem said, adding this was being done within the context of regulations and specifications set by its board.
One of the Gulf’s main commercial hubs before the 1980-88 Iran-Iraq war and the 1990-91 Gulf war spooked investors, Kuwait is now embarking on a program to liberalize its economy and open up some sectors to competition.
HSBC Holdings PLC Chief Executive Stephen Green said in December that his bank sought to expand operations in the Middle East by setting up shop in places such as Iraq and Libya.
