Riyadh’s business environment is on the brink of a significant transformation, led by the financial technology (fintech) sector which is currently dominating venture capital investments. This insight was shared by the chairman of the Saudi Capital Market Authority during the third Saudi Capital Market Forum in the nation’s capital.
At this gathering, Mohammed El-Kuwaiz articulated a vision that signaled an upcoming era of change within the Saudi capital market sphere. He pointed out the remarkable growth in the volume of startup funding, particularly within the fintech domain, which stands as a bastion of innovation and a key player in the investment landscape.
The most noteworthy sector in venture capital is fintech, or financial technology,
El-Kuwaiz observed, emphasizing its critical influence in fostering financial inclusivity and a digital revolution.
The forum served as a nexus for crucial industry stakeholders, investors, and thought leaders, all keen on delving into the prospects and hurdles that are sculpting the future of Saudi Arabia’s financial industry.
The conversation also touched on the urgent requirement for uniformity in sustainability reporting. This sentiment is resonating with both investors and issuers who are seeking standardization. El-Kuwaiz conveyed a united effort toward creating a locally relevant taxonomy for sustainability reporting, in partnership with pertinent regulatory authorities.
In the face of a robust increase in initial public offering (IPO) activities, El-Kuwaiz announced a 30 percent growth in the IPO pipeline spanning the main market and Nomu, the parallel market, in comparison to the preceding year. This uptick is a testament to the Kingdom’s position as a compelling hub for investment, rich with latent possibilities for market players.
El-Kuwaiz depicted Saudi Arabia’s transition from a traditional net exporter to a net importer of capital, marking a shift that necessitates significant infrastructural advancements. For the first time, Saudi Arabia is encountering the proposition of transforming from a net exporter of capital to a net importer of capital,
he affirmed.
Moreover, he stressed the importance of expanding private sector debt issuances, aiming to increase their share from 4 to 18 percent of the gross domestic product by the year 2030. This goal is in line with Saudi Arabia’s ambitious vision to cultivate a thriving and diverse financial ecosystem, propitious for ongoing economic development and affluence.
In his concluding remarks, El-Kuwaiz praised the Information and Communication Technology (ICT) sector as a pillar of resilience and expansion within the Saudi capital market, noting its exceptional performance as the premier sector in 2023 in terms of listings and capital mobilization.