Capital Markets
From The Report: Saudi Arabia 2025
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With initial public offerings, bond and sukuk (Islamic bond) issuances surging and further build-out by the Kingdom’s non-oil economy, Saudi Arabia’s capital markets are currently going through an expansionary period. This change is a key pillar in the Kingdom’s long-term development plan, Vision 2030, which seeks to make the country a regional and international financial centre as part of its broader economic diversification strategy. The full weight of the Kingdom is therefore now behind this drive, which will see the completion in 2026 of the 2024-26 phase of Saudi Arabia’s Capital Market Authority Strategic Plan, stimulating growth. The next phase will see capital markets open further to international investors, alongside continued regulatory and supervisory strengthening.

This chapter contains interviews with Mohammed Al Rumaih, CEO, Saudi Exchange; Faris AlGhannam, CEO, HSBC Saudi Arabia; and Khalid Al Sharif, CEO, Abdul Latif Jameel Finance.

Articles from this Chapter

Overview

Capital unbound: Record listings, expanding debt instruments and full foreign participation signal a transformative phase
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With initial public offerings (IPOs), bond and sukuk (Islamic bond) issuances surging and further buildout by the Kingdom’s non-oil economy, Saudi Arabia’s capital markets are currently going through an expansionary period. This change is a key pillar in the Kingdom’s long-term development plan, Vision 2030, which seeks to make the country a regional and international financial centre as part of its broader economic diversification strategy. The full weight of the Kingdom is therefore now behind this drive, which will see the completion in 2026 of the 2024-26 phase of Saudi Arabia’s Capital Market Authority Strategic Plan (CMASP), driving…

Interview

Growth amplified: Mohammed Al Rumaih, CEO, Saudi Exchange, on expanding investor participation and strengthening market foundations
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Interview: Mohammed Al Rumaih, CEO, Saudi Exchange, on expanding investor participation and strengthening market foundations How do you envision the capital markets’ long-term position globally and what distinguishes them from other regional financial markets? MOHAMMED AL RUMAIH: The long-term trajectory points to a deeper integration with global markets and sustained growth in economic influence. What sets Saudi Arabia apart is the depth and diversity of its listed companies across multiple…

Analysis

Borrowing boom: Growing debt issuance supports market liquidity, providing a wider spectrum of fixed-income opportunities
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Saudi Arabia is currently home to some of the world’s largest construction giga-projects, which together are reshaping the Kingdom’s investment landscape. These multi-billion-dollar developments include NEOM, Qiddiya, a range of initiatives by Red Sea Global, and the work of the ROSHN Group and Diriyah Company. Projects of this scale require diversified and sustained sources of funding, drawing increasingly on the Kingdom’s capital markets alongside the international debt market. As government and corporate bonds and sukuk (Islamic bonds) become core financing instruments for these giga-projects, Saudi Arabia is positioning itself as one…

Analysis

Alternative investment: Decentralised financing could play an important role in GCC countries’ efforts to diversify their economies
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GCC countries are increasingly embracing decentralised finance (DeFi) and attracting cryptocurrency firms as they seek to harness financial technology (fintech) innovation, expand services and boost financial inclusion. DeFi, characterised by peer-to-peer financial services without central authorities, is seen as a means for economic diversification and the adoption of Web3 technologies like blockchain, the internet of things and artificial intelligence. Projections vary, but conservative estimates expect the global DeFi market to grow at a compound annual rate of 11% from 2025 to 2030, surpassing $87bn in value by 2030, according to a 2025 report…

Interview

Funding growth: Faris AlGhannam, CEO, HSBC Saudi Arabia, on expanding investor access and market opportunity
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Interview: Faris AlGhannam, CEO, HSBC Saudi Arabia, on expanding investor access and market opportunity What lessons were learned from the initial public offering (IPO) activity in 2024? FARIS ALGHANNAM: The equity market can maintain momentum even when the secondary market is mixed and global conditions are uncertain. This resilience comes from the nature of companies going public – many operate in sectors linked to national transformation programmes and large-scale development initiatives.…

Interview

Investment currents: Khalid Al Sharif, CEO, Abdul Latif Jameel Finance, on leveraging digital and sharia-compliant solutions for financial inclusion
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Interview: Khalid Al Sharif, CEO, Abdul Latif Jameel Finance, on leveraging digital and sharia-compliant solutions for financial inclusion How can non-bank financial institutions (NBFIs) deepen participation and expand access in debt and sukuk (Islamic bonds) markets? KHALID AL SHARIF: NBFIs have filled critical gaps, especially for small and medium-sized enterprises for which audited financials and formal documentation are often limited. NBFIs’ closer engagement with small businesses allows…