Foreign investment levels and sukuk funds among milestones revealed by CMA report


 

Key Financial Achievements:

  1. Sukuk and Debt Instruments:

    • Raised SR29.95 billion ($8 billion).
    • The sukuk and debt instruments market reached 18.3% of GDP.
    • 70 sukuk and debt instruments listed.
    • Significant growth in sukuk and debt capital market since 2019, with unlisted issuances growing annually by 9.6%.
    • Total corporate sukuk and debt market size reached SR125 billion.
  2. Foreign Investments:

    • Secured SR198 billion in foreign investments, marking a 7.7% increase from the previous year.
    • Foreign investor ownership rose to SR401 billion.
  3. Market Activity:

    • Traded values increased to SR2.5 billion.
    • Transactions surged from 3,722 in 2021 to 36,961 in 2023.
    • Individual investor participation increased to 12.5%.

Regulatory and Market Developments:

  1. New Regulations and Amendments:

    • Approved new regulation and amended four existing principles, rules, and instructions.
    • Sanctioned Real Estate Contributions Law to strengthen the legislative framework.
    • Introduced Rules for Foreign Investment in Securities.
    • Updated critical regulations such as:
      • Implementing Regulations of the Companies Law for Listed Joint Stock Companies.
      • Capital Market Institutions Regulations.
      • Instructions for Company Announcements.
      • Investment Accounts Instructions.
  2. Market Listings:

    • 43 new listings, a 79% increase from the target.
    • Seven companies listed in the main market.
    • 29 companies listed in the parallel market.
    • Six direct listings in the parallel market.
    • One traded real estate fund.

Strategic Initiatives:

  1. Debt Market Development Strategy:

    • Fostered market growth and enhanced liquidity.
    • Canceled CMA’s share of the trading commission on sukuk and bonds.
  2. Global Financial Market Rankings:

    • Ranked first among G20 countries in the Board of Directors Index.
    • Secured second place in key indices such as:
      • Ease of Access to Financial Markets Index.
      • Stock Market Capitalization Index.
      • Shareholder Rights Index.
      • Venture Capital Index.
    • Improved position in six out of 12 financial market indicators according to the IMD World Competitiveness Yearbook.

Impact and Future Outlook:

  • The CMA’s efforts align with Saudi Vision 2030, aiming to enhance market vibrancy, governance, and investor protections.
  • Continuous collaboration with the Financial Sector Development Program to foster market development.
  • Focus on adopting best practices and digitalizing trade processes to attract global investors.

These achievements underscore Saudi Arabia's commitment to developing a robust and competitive capital market, contributing to the Kingdom's economic diversification and long-term financial stability.

Post a Comment

Previous Post Next Post