The Kingdom of Saudi Arabia is experiencing a period of sustained economic growth, outperforming other G20 nations in 2022. This expansion is attributed to higher global energy prices, resulting in a fiscal surplus and supporting diversification efforts and the non-oil sector.
With the launch of a new joint initiative to support the countries that are most vulnerable to climate change, the global insurance industry is evolving in ways that could carry important implications for business in emerging markets. One such initiative, the Global Shield against Climate Risks (GSCR) was announced by the ministers of finance of the so-called Vulnerable Twenty Group (V20) and the…
The GCC saw a rise in initial public offerings (IPOs) in 2022 despite volatility in secondary markets, surpassing the previous year’s record high. The total number of IPOs in the region increased from 20 in 2021 to 48 in 2022, marking a 140% rise, and proceeds from GCC issuers increased by 211% from $7.5bn to almost $23bn over the same period. The growing number of successful IPOs in the region…
Amid significant headwinds in 2022, environmental, social and governance (ESG) funds saw their first net outflow since 2011. However, the energy transition, climate-related threats to food security and the search for long-term value could prompt a resurgence of sustainable investment in emerging markets. Global ESG funds enjoyed a record run from 2019 to 2021, growing by 98% and seeing net inflows…
Financial inclusion is a pivotal concept in the evolving financial landscape. The term refers to the process of ensuring that vulnerable demographics gain access to financial services, as well as including the provision of timely and adequate credit at an affordable cost from mainstream institutions. A significant component of the financial inclusion paradigm is microfinance, which allows vulnerable…
As GCC countries look to harness new forms of financial technology (fintech), expand their services and improve financial inclusion, governments are embracing decentralised finance (DeFi) and working to attract cryptocurrency companies. DeFi – peer-to-peer financial services with no central authority or intermediary involved in trading, lending and investing – is seen by GCC countries as an opportunity…
Fuelled by mandatory health insurance and strong economic growth, the Kingdom emerged as the largest insurance market in the Gulf in 2022, with sector-wide gross written premium (GWP) reaching SR53.4bn ($14.2bn). In addition to headline growth drivers, the country benefitted from heightened risk-management awareness, the emergence of new insurable assets and a more competitive marketplace. Regulators…
Saudi Arabia has the largest and most liquid stock market in the MENA region. With a market capitalisation of about $2.9bn as of July 2023, Saudi Arabia is considered an attractive destination for international investment. The Kingdom is advancing a comprehensive Financial Sector Development Programme (FSDP) to diversify the economy away from reliance on hydrocarbons in line with the long-term socio-economic…
The sector is in the process of updating the Kingdom’s banking laws for the first time in over 50 years, with draft changes currently under public consultation. This, along with regulatory sandboxes and new support for financial technology (fintech) businesses, has added further momentum to a rapidly changing and burgeoning sector, which has seen ATMs and bank branches close as digital payments and…
Interview:Othman AlKassabi What is the projected outlook for the insurance industry in Saudi Arabia? OTHMANALKASSABI: The Saudi insurance industry has emerged as one of the fastest-growing markets in the world. Within this context, digital transformation has gained momentum, yet underscores the need for cybersecurity and data privacy infrastructure to protect sensitive customer information.…
