Riyadh witnesses a call to action from Saudi Arabia’s Finance Minister, Mohammed Al-Jadaan, who emphasizes the need for expedited financial reforms to enhance economic stability. During the third Saudi Capital Market Forum, Al-Jadaan addressed the significance of predictability and consistency in reforms while speaking on a panel.
Al-Jadaan pointed out the substantial regulatory and legal transformations that have taken place since 2016, especially in the realms of capital markets and finance. He stressed the importance of speed in compliance and regulation, directing his message to Mohammed El-Kuwaiz, chairman of the Saudi Capital Market Authority, and Tadawul, the kingdom’s stock exchange.
The Finance Minister spoke about the necessity of a robust regulatory framework to provide certainty for investors and issuers. He also touched on the importance of an issuer-friendly environment, which includes advisory services and market participants that can guide investors through aspects beyond government control.
“We need elements like a yield curve that is based on a clear sovereign benchmark for periods extending up to 50 years, which the government has been working on over the last five years,” Al-Jadaan remarked, underscoring the need for financial tools that provide a benchmark for investors.
Al-Jadaan also encouraged key players to consider investing in Saudi Arabia, touting the government’s transparency and unified approach to achieving its objectives. He emphasized the strong performance of the Saudi economy despite various global shocks and its robust growth since the onset of the COVID-19 pandemic.
Moreover, he pointed out the country’s solid credit rating of A+ and a stable or positive outlook, along with a currency pegged to the US dollar, mitigating exchange rate risks.
Sarah Al-Suhaimi, chairperson of Saudi Tadawul Group, highlighted the remarkable increase in the number of qualified foreign investors in Saudi Arabia, which has seen nearly 4,000 by the end of the previous year. She attributed this growth to the vibrant liquidity, sophisticated infrastructure, and diverse investment options within the Saudi capital market.
Al-Suhaimi further elaborated on Tadawul’s strategic plans, which involve expanding into various financial instruments such as debt, derivatives, and commodities, with the aim of increasing international participation.
The Finance Minister acknowledged the considerable progress made by Saudi Arabia in its transformation journey, referencing the nation’s commitment to stability and business opportunities on a global scale. He reaffirmed the commitment to de-escalate geopolitical tensions and uphold peace and stability.
The third Saudi Capital Market Forum, convened under the theme ‘Powering Growth’, brought together global financial experts to exchange ideas and strategies for the sector’s advancement. The forum, organized by Saudi Tadawul Group, is poised to foster dialogue and innovation, bridging emerging and established financial markets.
Economist and policy advisor Mahmoud Khairy underscored the importance of such forums, which he says are crucial for dialogue among stakeholders and contribute to the capital markets’ efficiency and allure. He also highlighted the alignment of the forum’s goals with Vision 2030’s objectives, which include enhancing transparency and attracting investments. Additionally, Khairy mentioned the forum’s role in nurturing a skilled workforce that is vital for the capital markets’ success.