• Home
  • Business
  • Economy
  • Finance
  • Investment
    • PIF
  • Technology
  • Real Estate
  • Events
  • Vision 2030
  • Projects
    • NEOM
    • Qiddiya
    • The Line
Saudi Business News
Thursday, May 15
17:22
41 °c
Riyadh
No Result
View All Result
Saudi Business News
  • Home
  • Business
  • Economy
  • Finance
  • Investment
    • PIF
  • Technology
  • Real Estate
  • Events
  • Vision 2030
  • Projects
    • NEOM
    • Qiddiya
    • The Line
No Result
View All Result
Saudi Business News
No Result
View All Result

HomeFinanceSaudi Capital Markets Thrive with $274B Growth

Saudi Capital Markets Thrive with $274B Growth

Vision 2030 drives investment and economic diversification.

January 23, 2025
in Finance
Reading Time: 2 mins read
153
SHARES
1.9k
VIEWS
Share on FacebookShare on XShare on LinkedInShare on Telegram

Saudi Arabia’s Capital Markets Experience Robust Growth with $274 Billion Raised

Saudi Arabia’s capital markets have seen remarkable expansion, raising over $130 billion in the last five years to support the Vision 2030 initiative. This growth is part of a broader strategy to attract investment, enhance global interest, and diversify the economy.

RelatedPosts

Bank Guarantee Reform Boosts Saudi Financial Sector

Saudi Arabia Leads Islamic Finance Growth in 2025

Saudi Stock Market Gains Driven by Key Sectors

A report by S&P Global highlights that Saudi issuers, including government and private entities, have raised significant funds through US dollar-denominated issuances. This is in addition to $144 billion raised locally in Saudi riyals over the same period, largely driven by Vision 2030’s objectives.

Government issuances account for about 60% of these funds, yet Vision 2030 has also spurred opportunities in the non-oil sectors and banking. Despite increased external leverage, favorable market conditions, such as declining interest rates, are supporting continued capital raising.

S&P Global expects that leverage will remain manageable, with private-sector debt to GDP staying under 100% in the upcoming 12-24 months. The favorable financial environment is set to persist as Saudi Arabia continues its large-scale projects and economic diversification.

Emerging Residential Mortgage-Backed Securities Market

In the next couple of years, a residential mortgage-backed securities (RMBS) market might emerge in Saudi Arabia. Banks currently hold over $175 billion in mostly fixed-rate mortgages funded by short-term deposits. Lower interest rates could make these mortgages appealing for secondary market transactions, enabling banks to securitize and sell them, thus freeing up capital for additional lending and investment in Vision 2030 projects.

The success of this market depends on resolving legal challenges to attract local and international investors. The Saudi Real Estate Refinance Co., rated A-/Positive, is expected to be instrumental in developing the RMBS market. Direct market issuances could also provide new opportunities for mortgage-backed securities, potentially unlocking significant financial resources for banks.

Tags: capital marketseconomic diversificationinvestmentsaudi arabiaVision 2030
Share61Tweet38Share11Share

© 2025 Copyright, Saudi Business News

No Result
View All Result
  • Home
  • Business
  • Economy
  • Finance
  • Investment
    • PIF
  • Technology
  • Real Estate
  • Events
  • Vision 2030
  • Projects
    • NEOM
    • Qiddiya
    • The Line

© 2025 Copyright, Saudi Business News

Go to mobile version