HSBC Holdings Plc (LON:HSBA) will start building a new Middle East headquarters near the world’s tallest tower in Dubai, as the UK’s largest bank looks to combine staff from three other locations in the city, Bloomberg has reported.
The new tower would be built by Abu Dhabi developer Gulf Resources Development & Investment, Bloomberg said yesterday, citing Jim Osborne, an official at the building company. Osborne added that GRDI would sell the building to HSBC Bank Middle East Limited for about 920 million dirhams ($250 million) when it is completed in 2017. The new headquarters’ total area will be approximately 861,000 square feet, including 320,000 square-feet of office space.
HSBC confirmed the plans yesterday, adding that it would start moving some of its Dubai-based staff into the new building in 2018. The bank currently has staff spread across four locations in the city. Three of those locations will be vacated following the completion of the building, the bank said.
The plan for the new headquarters comes with HSBC’s Middle East unit planning to move its seat of incorporation to the Dubai International Financial Centre this year. The unit, which is the largest international bank in the Middle East, is currently incorporated in Jersey, The Channel Islands.
In today’s trading, HSBC shares were down 0.4 percent at 08:42 GMT. The stock has fallen 9.8 percent since the start of the year and the company’s market capitalisation currently stands at £95.2 billion.
As of January 16, 2016, the consensus forecast amongst 26 polled investment analysts covering HSBC had it that the company will outperform the market. The same consensus estimate has been maintained since September 09, 2015, when the sentiment of investment analysts improved from “hold”.