Riyadh’s investment environment is on a trajectory of prosperity, spurred by the equity and debt markets, as observed by a top banking executive from J.P. Morgan.
During the Saudi Capital Market Forum held in Riyadh, Omar El-Amine, who leads Investment Banking at J.P. Morgan in Saudi Arabia, shared his perspectives on the Kingdom’s burgeoning attractiveness to investment communities.
The Kingdom’s ambitious socio-economic overhaul, coupled with regulatory enhancements, have been pivotal in magnifying its international charm.
“Saudi Arabia stands out as an exciting, compelling investment story for our investors from the region or globally,” El-Amine stated, further elaborating that the nation’s investment narrative is bolstered by socio-economic transformation and the implementation of various regulatory reforms that enhance its global profile.
El-Amine identified the stock market as an evident sign of the Kingdom’s robust economic activities and its broad, varied economy.
He underlined that the vitality of Saudi Arabia’s equity and debt markets mirrors the country’s robust economic growth, with initial public offerings (IPOs) serving as a powerful sign of confidence in the future.
When discussing the outcomes of recent IPOs, El-Amine observed, All the IPOs that have taken place in Saudi Arabia have performed plus 60, 70 percent in the last 12 months, which is a testimony of the strength of this market. Unlike other emerging markets or even international markets, the performance was negative or just neutral.
He anticipates J.P. Morgan’s vigorous engagement in forthcoming offerings slated for 2024 and 2025, underscoring an optimistic forecast for the Kingdom’s IPO marketplace.
In comparing Saudi Arabia’s advancement with other burgeoning economies, El-Amine drew attention to similar patterns of demographic expansion and industrial diversification. However, he emphasized the distinctive characteristics that differentiate the Kingdom.
El-Amine shed light on key indicators that align with those of Organisation for Economic Co-operation and Development countries, such as a $1 trillion economy size, GDP per capita exceeding $50,000, stable currency, and low debt-to-GDP ratio, which collectively amplify Saudi Arabia’s macroeconomic appeal to investors.
He commended the forum’s role in offering a venue to discover prospects, engage with investors, market leaders, and connect with key figures from entities like Tadawul and the Capital Market Authority.
The event served as a strategic opportunity for J.P. Morgan to enhance its grasp of industry benchmarks and goals, strengthen ties with industry players, and network with counterparts from various financial institutions.