Saudi Arabia’s Capital Market Authority (CMA) has announced a strategic plan for 2024-2026 aimed at strengthening its debt market and boosting the global competitiveness of its asset management sector.
The strategy focuses on three main pillars with over 40 initiatives to enhance market growth and efficiency. A significant goal is to improve the stock market’s role in capital raising.
Key measures include introducing special purpose acquisition companies on the parallel market and facilitating Saudi depositary receipts issuance. These steps aim to diversify investment options and attract both local and international investors.
CMA Chairman Mohammed El-Kuwaiz emphasized the plan’s bold objectives, stating it aims to create a robust debt market, enhance the asset management industry, and draw more investments to the national economy. These remarks were made during the Debt Markets and Derivatives Forum in Riyadh.
This initiative aligns with Saudi Vision 2030, aiming to support the national economy by developing an advanced financial ecosystem and attracting international investments. The plan also focuses on transparency, innovation in financial technology, and expanding financing options.
The CMA is also targeting the sukuk and debt instruments market by establishing regulatory frameworks for green, social, and sustainable debt instruments, aligning with global ESG criteria.
To stimulate market activity, the CMA is simplifying regulatory processes for debt instruments, targeting an increase in the stock market’s value to 80.8% of GDP by 2025 and expanding the debt instruments market to 24.1% of GDP.
Investor protection remains a key focus, with increased transparency and supervisory mechanisms. El-Kuwaiz highlighted the importance of trust and the CMA’s commitment to improving class action compensation procedures and complaint resolutions.
The CMA also aims to empower the financial market ecosystem through support for fintech, promoting the growth of fintech companies, and facilitating open finance applications. This strategy seeks to integrate advanced technologies into the financial sector, enhancing competition and efficiency.
Building on previous successes, the new plan aims to enhance the market’s appeal to foreign investors and establish Saudi Arabia as a regional and international financial leader by 2026. This includes doubling the number of fintech-licensed companies and increasing managed assets volume.
The plan includes comprehensive regulatory reforms, development of investment fund regulations, and improvements to class action compensation procedures. By focusing on ESG-aligned financial instruments, market transparency, and investor protection, the CMA aims to create a sustainable and resilient market environment.