Finance

The embedded finance sector in Saudi Arabia is witnessing rapid growth, propelled by technological innovations, strategic alliances, and a supportive regulatory framework. Recent product launches, partnerships, and acquisitions have highlighted the sector's potential to enhance financial accessibility and customer experiences. As the government champions digital transformation and open banking, Saudi Arabia is set to strengthen its leadership in the MENA...

Standard & Poor’s (S&P) has reaffirmed Saudi Arabia’s credit rating at "A/A-1" for both local and foreign currency, improving the outlook from "stable" to "positive." This decision is attributed to Saudi Arabia's dedication to comprehensive reforms and investments aimed at developing the non-oil economy and maintaining public financial sustainability. S&P anticipates significant growth in the non-oil sector, driven by Saudi...

Saudi Arabia’s Fourth Milling Company (MC4) has initiated investor orders for its IPO, aiming to raise up to $228.9 million. This move taps into the strong interest in listings within the GCC region. MC4 is offering 162 million shares, representing 30% of its total issued share capital. The indicative share price ranges from SAR 5 to SAR 5.30, suggesting a...

Saudi Arabia's Vision 2030 is revitalizing its financial sector, marked by a surge in IPOs, mergers, and acquisitions. This transformation has spurred investment opportunities for both local and foreign investors, with the investment banking market expected to reach $1.02 billion this year and $1.15 billion by 2029, growing at 2.43% annually. EFG Hermes KSA CEO Saud Altassan discusses how Vision...

Saudi Arabia and Hong Kong Strengthen ETF Ties Saudi Arabia's first ETFs focused on Hong Kong's equities market are set to be listed on the local stock exchange by year-end, aiming to bolster financial connections between the two regions. Hong Kong's financial secretary, Paul Chan, announced at the Bund Summit in Shanghai that reciprocal actions, including the listing of Hong...

The Tadawul All Share Index in Saudi Arabia rose by 57.75 points (0.49%) to 11,900.30 on Sunday, with a trading turnover of SR4.14 billion ($1.10 billion). Out of the stocks traded, 138 advanced while 80 declined. However, the parallel market Nomu fell by 164.65 points (0.63%) to 25,769.95, with 19 stocks advancing and 46 declining. The MSCI Tadawul Index also...

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...

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...

Saudi Arabia's finance and manufacturing sectors are particularly susceptible to cyberattacks, according to Samir Omar, CEO of MENA ISC. The finance sector alone has faced 18.2% of these attacks. In terms of cybersecurity, Saudi Arabia is a leader in the Arab world and holds the second position globally in the 2023 Global Cybersecurity Index. Omar highlighted that while the global...

Saudi Banks' Profits Hit Record High, Loans Surge Saudi banks achieved a record profit of $2.1 billion in July, a 23% increase from the previous year. From January to July, total profits rose to $13.4 billion, marking a 13% annual growth. Deposits grew by 8% to $704 billion, with term deposits surging 20% to $247.4 billion. Demand accounts, comprising 53%...

Saudi Arabia plans to cut down its debt issuance in the latter half of 2024, buoyed by significant dividend payments from Aramco, as per Fitch Ratings. This follows a period of heavy debt issuance in early 2024, showcasing the government's strategic fiscal maneuvers. In the first half of 2024, Saudi Arabia stood out as the largest issuer of US dollar...

Saudi Arabia and Germany are poised to enhance their economic cooperation in the finance sector following high-level discussions between officials from both nations. Saudi Investment Minister Khalid Al-Falih met with German Finance Minister Christian Lindner to discuss boosting investment relations and tackling shared interests. This comes as Germany's exports to Saudi Arabia reached €705 million in June, with imports from...

Saudi Arabia's Rising Influence in Global Financial Markets Saudi Arabia is positioning itself as a key player in global fixed income and debt markets, driven by its ambitious Vision 2030 initiative. This transformation is fueled by extensive construction projects and infrastructure development, necessitating diversified financial strategies and effective risk management. At the Debt Markets and Derivatives Forum 2024 in Riyadh,...

The Tadawul All Share Index in Saudi Arabia fell by 117.19 points, or 0.97%, closing at 11,982.30 on Sunday. Trading turnover was SR5.01 billion ($1.33 billion), with 61 stocks advancing and 166 declining. The parallel market Nomu decreased by 27.72 points, or 0.11%, ending at 25,740.79, with 30 stocks rising and 42 falling. The MSCI Tadawul Index also dropped 16.44...

PayerMax, a prominent global payment solutions provider, has been awarded the Payment Technical Service Provider (PTSP) certification by Saudi Payments, under the auspices of the Saudi Central Bank (SAMA). This certification authorizes PayerMax to extend its payment gateway services to merchants across Saudi Arabia. This achievement permits PayerMax to fully integrate into Saudi Arabia’s financial system. Recently, the company became...

Technology Driving Saudi Arabia's Financial Sector At the 24 Fintech event in Riyadh, Steven Chou, Chairman of Sahm Capital and Chief Strategy Officer of Valuable Capital Group Limited, emphasized the transformative impact of technology on Saudi Arabia’s financial sector. The event drew nearly 37,000 visitors, over 300 brands, and 350 investors, serving as a crucial forum for fintech innovation. Steven...

Saudi Arabia has issued a warning to taxpayers to submit necessary paperwork by Tuesday or face penalties. The Zakat, Tax, and Customs Authority (ZATCA) has instructed establishments subject to withholding tax to file their forms for August by September 10. Failure to meet the deadline will result in a late payment penalty of 1% of the unpaid tax for every...

Hakbah, a leading Saudi fintech savings platform, has partnered with national insurance company Tawuniya to fill a critical gap in the insurance market. Announced at 24Fintech in Riyadh, this partnership aims to provide consumers with enhanced financial security and peace of mind, addressing concerns about future uncertainties. Key benefits include comprehensive insurance coverage, improved financial security, and alignment with Saudi...

The Gulf Cooperation Council Interconnection Authority (GCCIA) has recently been awarded an A+/Stable credit rating by the prestigious Fitch Ratings. This recognition is anticipated to bring a host of benefits to the GCCIA, including better financing options, increased investor trust, lower interest rates on loans, and a stronger international presence. Eng. Ahmed Al-Ebrahim, the CEO of GCCIA, conveyed his contentment...

The Saudi Central Bank, known as SAMA, has witnessed a robust annual increase in its reserve assets, rising by 5.5% or approximately SAR 92,049 billion. By the conclusion of the second quarter of 2024, these reserves have impressively swollen to a total of SAR 1.754 trillion, up from SAR 1.662 trillion during the same timeframe in the previous year.Peak Performance...

The insurance industry in Saudi Arabia has experienced a remarkable 25 percent surge in profits during the first half of 2024, with earnings reaching SR2.2 billion ($585 million) in comparison to the previous year's figures.According to data sourced from financial markets, Bupa Arabia has taken the lead in the sector, garnering 35 percent of the total net income for the...

The Kingdom of Saudi Arabia has markedly increased its investments in US Treasury securities, with an infusion of $4 billion by June's end, elevating its reserves to the highest since the onset of the 2020 pandemic.Records from the Treasury Department reveal that the total value of Saudi holdings reached slightly above $140 billion at the halfway point of the year....

The International Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank Group, has inked a financing deal worth $100 million with the Turkish Development and Investment Bank. This substantial financial injection is aimed at propelling Türkiye's agricultural and food sectors forward, with a keen focus on bolstering food security, renewable energy initiatives, and vital infrastructure. ITFC's CEO, Hani...

On a day of varied fortunes, the Saudi Arabian stock exchange, known as the Tadawul All Share Index, reported a modest increase, climbing by 33.73 points, which is a 0.29 percent rise, to finalize at 11,730.77. The benchmark index's trading volume reached SR7.09 billion (approximately $1.89 billion), with 169 stocks observing upward movement and 54 experiencing a decline. In a...

The city of Zurich recently became the focal point for strengthening economic and financial relations between Saudi Arabia and Switzerland during the fourth edition of the Saudi-Swiss Financial Dialogue. Spearheading the Saudi delegation was the Kingdom's Finance Minister, Mohammed Al-Jadaan, accompanied by key representatives from the Saudi Central Bank, the Insurance Authority, the Financial Sector Development Program, and Fintech Saudi.At...

Experts at a recent industry forum have identified significant hurdles that Saudi Arabia must overcome to expand its securities borrowing and lending (SBL) activities. The discussions took place at the International Securities Lending Association (ISLA) conference, which highlighted the organization's growing involvement in the Middle East, including the establishment of major milestones and strategic phases. The ISLA's engagement with the...

The 4th Saudi-Swiss Financial Dialogue, a pivotal meeting aimed at bolstering economic and financial collaboration between the two nations, was recently convened in Zurich. The Saudi delegation was spearheaded by Finance Minister Mohammed Aljadaan and included high-ranking officials from key financial institutions such as the Saudi Central Bank and the Insurance Authority, as well as representatives from the Financial Sector...

Saudi Arabia's Ascension in Global Debt Issuance signals a pivotal shift in economic strategies, as the kingdom's market size is notably smaller compared to China's, being approximately just 6.25% of the Asian giant's economy. The kingdom is ambitiously redefining its business landscape with the aim of becoming a formidable global commercial hub by the year 2030.Recent figures have highlighted a...

In a significant shift within the emerging markets, Saudi Arabia has overtaken China as the leading issuer of international debt, a position held by Beijing for more than a decade. This change underscores a dynamic shift in global borrowing practices and points towards the kingdom's aggressive funding strategy for its ambitious Vision 2030 plan.Recent figures show that Saudi Arabia has...

China has further integrated into the global capital market by launching Asia’s inaugural exchange-traded fund (ETF) that is designed to mirror the performance of Saudi Arabia’s major corporations, marking a significant step in the burgeoning financial relations between the two nations.Approval has been granted by the China Securities Regulatory Commission for the listing of two feeder funds on the Chinese...