Capital Markets

Saudi Arabia’s capital markets have become a key pillar of Vision 2030, driving diversification and reducing reliance on oil revenue. Thanks to recent reforms, the Kingdom has established itself as a regional financial centre, attracting substantial foreign investment. The Saudi Exchange, known as the Tadawul, is one of the world’s largest capital markets and regularly ranks in the top-10 by market capitalisation, with $2.7trn as of August 2024. Increased IPO activity, strategic mergers and investor interest in financial technology, health care and real estate highlight market growth. Regulatory improvements have enhanced transparency and confidence, strengthening the Tadawul, the Nomu – Parallel Market and debt markets. This development provides a strong foundation for economic growth, foreign investment and the achievement of Vision 2030 objectives. This chapter also contains interviews with Mohammed El Kuwaiz, Chairman, Capital Market Authority; Mohammed Al Rumaih, CEO, Saudi Exchange; and Faris AlGhannam, CEO and Board Member, HSBC Saudi Arabia.

Articles from this Chapter

Overview

Buoyant progress: A boom in listings and a burgeoning debt market underscore the robustness of the Kingdom’s capital markets
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Saudi Arabia’s capital markets have developed rapidly into a critical pillar of the Kingdom’s wide-ranging Vision 2030 agenda, driving economic diversification and reducing the country’s dependency on oil revenue, while drawing investment into the country. In recent years, thanks to a series of reforms and strategic initiatives, the Kingdom has successfully positioned itself as a key regional financial centre, attracting unprecedented levels of foreign investment and enhancing market sophistication. Tadawul At…

Interview

Evolving markets: Mohammed El Kuwaiz, Chairman, Capital Market Authority (CMA), on aligning with international standards
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Mohammed El Kuwaiz, Chairman, Capital Market Authority (CMA): Interview What steps can regulatory authorities take to encourage listed companies to align with environmental, social and governance (ESG) principles? MOHAMMED EL KUWAIZ: The CMA is developing a regulatory framework for green, social and sustainable debt instruments, alongside incentivising diverse issuances in the sukuk (Islamic bonds) and debt markets. A significant development has been the growth in the number of companies publishing…

Interview

Growing interest: Mohammed Al Rumaih, CEO, Saudi Exchange, on how sustainable development and emerging technologies impact local markets
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Mohammed Al Rumaih, CEO, Saudi Exchange: Interview In what ways does Saudi Arabia’s Vision 2030 impact the development of domestic capital markets? MOHAMMED AL RUMAIH: Vision 2030 is having a strong effect on the development of capital markets as part of the Kingdom’s broader goal to diversify its economy away from oil. Introduced in 2018, the Financial Sector Development Programme is a cornerstone of this initiative. It aims to develop advanced capital markets, enhance the competitiveness…

Analysis

Attractive prospects: Updated regulatory frameworks are helping to draw foreign investors to the Kingdom’s capital markets
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Saudi Arabia has made substantial progress in attracting foreign investors to its capital markets in recent years, transforming the Kingdom into a key destination for global capital. Through a series of strategic reforms – including the easing of foreign ownership restrictions, the inclusion of Saudi stocks in major global indices and enhanced regulatory frameworks – the Kingdom has opened its market to a broader international audience. These efforts have increased foreign investment inflows…

Interview

Innovative financing: Faris AlGhannam, CEO and Board Member, HSBC Saudi Arabia, on attracting greater foreign investment inflows to the Kingdom
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Faris AlGhannam, CEO and Board Member, HSBC Saudi Arabia: Interview What factors position Saudi Arabia as an attractive investment destination for the global community? FARIS ALGHANNAM: Saudi Arabia has positioned itself as one of the world’s top-10 capital markets, driven by its robust economic foundations and strategic vision. The Kingdom has made strides in attracting foreign investors, growing from virtually no such participation in the Saudi Exchange to owning more than 10% of the market…

Analysis

Making a mark: Emerging markets are seeing a major shift towards sustainability initiatives, reshaping the global investment landscape
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Impact investment – which is purposely designed to generate tangible social and environmental benefits alongside financial returns – presents promising risk-adjusted prospects. This type of investment not only provides value for investors, but can also greatly advance the UN Sustainable Development Goals. According to the Global Impact Investing Network (GIIN), the impact investing market has experienced substantial growth, with an estimated worth of $1.2trn at the end of 2021. This marks a…