Saudi Arabia’s capital markets saw the listing of 70 sukuk and debt instruments in 2023, which raised SAR29.95 billion ($8 billion), including SAR29.85 billion from private placements and SAR100 million from public offerings.
The latest Capital Market Authority (CMA) 2023 annual report highlights significant leaps and record achievements in various regulatory and legislative aspects, as well as developmental and investment product areas in Saudi Arabia. According to the report, the size of the sukuk and debt instruments market reached 18.3 percent of the Kingdom’s GDP by the end of 2023.
Foreign investments surge
Saudi Arabia’s capital market witnessed several record highs in 2023, including record net foreign investments which rose 7.7 percent annually to SAR198 billion ($52.78 billion). The ownership of foreign investors also continued to rise, reaching SAR401 billion ($106.89 billion) by the end of 2023.
Offerings and listings exceed target
The CMA annual report also reveals that Saudi Arabia’s capital market saw 43 offerings and listings in 2023, a 79 percent increase over the year’s target. Of the 43 listings, seven companies listed their shares on the main market while 29 listed them in the parallel market. In addition, six companies offered a direct listing of their shares in the parallel market and the listing of a traded real estate fund.
Investor protection
In line with its commitment to investor protection, the CMA concluded 146 cases and executed 179 sanction decisions against violators of the Capital Market Law (CML) and its implementing regulations. Additionally, it compensated 579 investors with over SAR245 million by final decisions issued by the CRSD.
On the judicial level, the total amount of fines and financial penalties issued by CMA and CRSD against violators of the regulations under the authority’s jurisdiction amounted to SAR1.395 billion, of which SAR 375.35 million were collected.
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Saudi Arabia tops global financial market indicators
As a result of these efforts and achievements, Saudi Arabia positioned itself at the top of several global financial market indicators, ranking first among G20 countries in the Board of Directors Index, and second in the Ease of Access to Financial Markets Index, Stock Market Capitalization Index, Shareholder Rights Index, and Venture Capital Index.
According to the IMD World Competitiveness Yearbook, Saudi Arabia improved its ranking in six out of 12 financial market indicators and maintained its ranking in two indicators compared to 2022.
Mohammed Elkuwaiz, chairman of Saudi Arabia’s Capital Market Authority, emphasized that CMA is on its path towards further development and advancement of the Saudi capital market to be at the forefront of global markets. Moreover, he stated that CMA has completed its strategic plan for the years 2021-2023 and is preparing to announce its new strategic plan upon approval by the authority’s board. The new plan’s objectives will fall in line with Saudi Vision 2030.
Notably, Saudi Arabia’s Capital Market Authority achieved record numbers in 2023 within the performance indicators outlined in its strategic plan for 2021-2023, surpassing targets in 9 out of 13 strategic indicators, meeting targets in 2 indicators, and nearing targets in the remaining two indicators.
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