Saudi Arabia’s Capital Market Authority (CMA) has rolled out a strategic plan for 2024-2026 to strengthen its debt market and boost the international competitiveness of its asset management sector.
This plan focuses on three main pillars and includes over 40 initiatives aimed at market growth and efficiency. A significant part of this strategy is enhancing the stock market’s role in capital raising.
Key measures include the introduction of special purpose acquisition companies in the parallel market and the issuance of Saudi depositary receipts. These initiatives aim to diversify investment opportunities and attract both domestic and international investors.
CMA Chairman Mohammed El-Kuwaiz emphasized the strategy’s goals: “Our new strategy emphasizes the creation of a robust debt market, the enhancement of the asset management industry, and the attraction of increased investments to the national economy.”
This strategy aligns with Saudi Vision 2030, which aims to support the national economy by creating an advanced financial ecosystem and drawing international investments. The plan also targets increased transparency, financial technology innovation, and expanded financing options.
Additionally, the CMA is focusing on developing the sukuk and debt instruments market by establishing regulatory frameworks for green, social, and sustainable debt instruments, aligning with global ESG trends.
The CMA is simplifying regulatory processes for offering, listing, and registering debt instruments to stimulate market activity. Goals include increasing the stock market’s value to 80.8% of GDP by 2025 and expanding the debt instruments market to 24.1% of GDP by the same year.
Investor protection is a central theme, with efforts to enhance market transparency and supervisory mechanisms. El-Kuwaiz highlighted the importance of trust in the market, underscoring the CMA’s commitment to class action compensation procedures and complaint resolution processes.
The CMA also aims to empower the financial market ecosystem by supporting fintech growth and facilitating open finance applications. This strategy integrates advanced technologies to streamline operations and enhance user experiences.
Building on past successes, including a 52% increase in listed companies from 2019 to 2023, the new plan seeks to further advance the market and enhance its appeal to foreign investors. The goal is to establish the Saudi financial market as a regional and international leader by 2026, doubling the number of fintech-licensed companies and increasing managed assets.
The comprehensive approach includes regulatory reforms, development of investment fund regulations, and improvements in 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.