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 2030 is reshaping investment banking and outlines the company’s strategic approach to leveraging these opportunities through digital innovations and revenue diversification.
Impact of Vision 2030 on Investment Banking: Vision 2030 aims to diversify Saudi Arabia’s economy beyond oil, fostering growth in technology, healthcare, entertainment, and tourism. This has led to a dynamic financial market with increased privatizations, M&A, and IPOs. EFG Hermes KSA capitalizes on these changes by offering advisory, asset management, and brokerage services, leveraging its local and international expertise.
Leveraging Tadawul’s Growth: Tadawul’s strong performance reflects the success of Vision 2030. EFG Hermes KSA has expanded its product offerings, enhanced market research, and utilized technological advancements to better serve clients. Since 2019, the company has closed over 14 IPOs and continues to focus on high-growth sectors and providing insightful market analysis.
Promising Sectors for Future Growth: EFG Hermes KSA identifies sectors like healthcare, energy, and consumer-driven businesses as key growth areas. The company advises on several high-profile transactions, contributing to Vision 2030’s economic goals.
Integrating ESG Factors: EFG Hermes KSA incorporates ESG principles into its investment strategies to ensure sustainability and alignment with global best practices. The company engages with portfolio companies to encourage ESG adoption, viewing responsible investment as both a moral imperative and a strategic necessity.
Ensuring Resilience Amid Global Uncertainties: To remain resilient, EFG Hermes KSA diversifies its revenue streams across various sectors and markets, invests in technology and innovation, and maintains a strong risk management framework. This multifaceted approach positions the company to navigate global challenges and sustain growth.