HSBC to spend $1.2m to help Covid-19 charity projects in Middle East

The lender is to help 80,000 people affected by coronavirus in seven countries

HSBC will spend $1.2 million on charitable projects in Menat region to help individuals and families impacted by coronavirus. Photo: Reuters

HSBC, Europe’s largest bank, will spend $1.2 million (Dh4.4m) from a $25m global fund on charity projects in the Middle East, North Africa and Turkey region to help individuals and families affected by the coronavirus pandemic.

The lender will “immediately begin making contributions to a range of projects in Algeria, Bahrain, Egypt, Kuwait, Oman, Qatar, and the UAE to help an estimated 80,000 underprivileged individuals and families impacted by Covid-19”.

The funding will also help hospital workers fighting against the spread of the pandemic, HSBC said in a statement on Monday.

“Our efforts in Menat as part of the group’s $25m Covid-19 charitable fund will be vitally important to our local communities,” said Sabrin Rahman, HSBC's head of sustainability in the Middle East, North Africa and Turkey.

“We have acted quickly to the urgent call for support by putting our resources to work where they have the biggest impact and donating to specific projects so that we are able to ensure accountability and track the real impact our funding has had on people's lives.”

Coronavirus, one of the biggest challenges to the global economy since the 2008 financial crisis, has disrupted trade, the travel industry and rattled investors.

Governments worldwide have launched stimulus packages worth more than $8 trillion to support their economies as unemployment surges due to lockdowns and restrictions on movement.

Companies and banks, including HSBC, have slashed their dividend pay outs and chief executives’ salaries to preserve capital to cope with the economic fallout from the pandemic.

“We carefully selected local charity partners that have track records of being able to identify and help vulnerable communities by getting them food, medicine and education resources,” Mrs Rahman added.

In the UAE, the bank has allocated $505,000, which is expected to benefit around 13,720 people.

HSBC first announced a $25m Covid-19 charitable fund in March and had so far donated $5m to relief efforts in mainland China, Hong Kong, the UK and India. The lender has supported organisations including the International Federation of Red Cross and Red Crescent Societies and the World Health Organisation.