HSBC is to open a branch in Kuwait following a 34 year absence from the country, after being issued with a license by the country's central bank.

David Hodgkinson, CEO and deputy chairman of HSBC Bank Middle East, said that the branch would open as soon as registration had been completed.

Hodgkinson added: After more than 30 years absence from Kuwait, we are very pleased to have been granted a license to re-enter this important regional market. Kuwait is a significant regional trading economy and a branch presence in this market will materially strengthen HSBC’s coverage of the Middle East region.

HSBC is the largest and most widely represented international bank in the Middle East. HSBC Bank Middle East had a presence in Kuwait since 1942, when it was established as the Imperial Bank of Persia. However, following changes to the Kuwaiti banking laws, the financial institution’s business was bought by local Kuwaiti banks in 1971.

HSBC applied for the new branch license in 2004 after another change to the Kuwaiti banking laws gave permission for foreign banks to set up a single branch in the country.