Capital Markets
From The Report: Saudi Arabia 2022
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Capital markets in Europe, the US and Asia have experienced challenging times in the wake of the Covid-19 pandemic and Russia’s invasion of Ukraine. However, Saudi Arabia’s capital markets have experienced sustained growth, with high-value initial public offerings (IPOs), robust trading, and the Saudi Exchange showing the largest market capitalisation and liquidity of any country across the GCC as of mid-2022. The short and medium-term outlook appears promising, with a strong IPO pipeline, and confidence among foreign and domestic investors that 2023-24 will be an impressive period for the Saudi economy and capital markets.

This chapter contains interviews with Mohammed Al Rumaih, CEO, Saudi Exchange; and Rajiv Shukla, CEO, HSBC Saudi Arabia.

Articles from this Chapter

Overview

Positive outlook: Burgeoning foreign interest and reliable growth point to a prosperous future despite the fragile global economy
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Capital markets in Europe, the US and Asia have experienced challenging times in the wake of the Covid-19 pandemic and Russia’s invasion of Ukraine. However, Saudi Arabia’s capital markets have experienced sustained growth, with high-value initial public offerings (IPOs), robust trading and the Saudi Exchange showing the largest market capitalisation and liquidity of any country across the GCC as of mid-2022. The shortand medium-term outlook appears promising, with a strong IPO pipeline, and…

Interview

Leading by example: Mohammed Al Rumaih, CEO, Saudi Exchange, on helping firms list, mature and access new sources of capital
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Interview:Mohammed Al Rumaih What steps are required to deepen the participation of the private sector in Saudi Arabia’s economy? MOHAMMED AL RUMAIH: The private sector and investors – both foreign and local – have been increasing their participation in the economy. Our strategy moving forwards is to connect firms with the international market, attract additional global investors and boost liquidity. We recently launched a range of initiatives to develop the post-trading infrastructure…

Analysis

Derivative developments: Growing options look set to attract institutional investors as momentum builds for further innovation
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Under the umbrella of Saudi Arabia’s long-term socio-economic development strategy Vision 2030, the Financial Sector Development Plan (FSDP) provides a road map for the Kingdom’s banking, insurance and capital markets sectors. The creation and growth of an advanced capital market is outlined as a key strategic pillar. Such a market would offer opportunities for product diversification and greater security, providing investors with opportunities to hedge and manage risk. As a result, a derivatives…

Interview

Positive developments: Rajiv Shukla, CEO, HSBC Saudi Arabia, on foreign investment, private sector participation and sustainable financing
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Interview:Rajiv Shukla What has been done to increase foreign investor participation in Saudi Arabia’s capital markets? RAJIV SHUKLA: The current level of market activity is a clear indicator of the success of recent liberalisation, reform and development initiatives in Saudi Arabia’s capital markets. More companies are being listed and the availability of new stock in the market will attract increased foreign investor participation over time. Capital markets work best when there is constant…

Analysis

Greenlighting bonds: Markets around the globe are increasingly issuing green and social bonds in an effort to support sustainable growth
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Alongside significant political efforts to speed up the energy transition, 2021 was a record-breaking year for green finance, as governments, international institutions and lenders alike sought to support the shift towards renewables. This mirrored developments in generation: new renewable energy capacity reached an all-time high of 290 GW in 2021. Meanwhile, the issuance of green bonds – financial instruments that fund environmentally sustainable projects – was expected to hit a new record of…