Saudi Arabia’s capital market institutions saw a 27% rise in operating income, reaching $1.1 billion in Q2.
Operating income, which factors in wages, depreciation, and cost of goods sold, reflects profitability after these expenses.
According to the Capital Market Authority (CMA), asset management led the way, contributing 31% of total revenue, a 22% increase from last year.
Investment activities contributed 30% of the income with $322 million, although this was a 15% decrease from the previous year.
Despite these gains, net profit, which accounts for all expenses including zakat and taxes, dropped by 3% to $532 million due to higher non-operating expenses.
An international financial report highlights that the Saudi stock exchange (Tadawul) has become the world’s 10th largest by market capitalization, driven by CMA reforms aligned with Vision 2030’s economic diversification goals.
Vision 2030, launched in 2016, aims to diversify Saudi Arabia’s economy away from oil. Increased foreign investment has been crucial in supporting these reforms, helping capital markets remain resilient amid global economic uncertainties.