As Saudi Arabia’s economy continues to demonstrate robust growth, it is attracting increasing interest from investors worldwide. A J.P. Morgan senior official has indicated strong confidence in the Kingdom’s investment environment, particularly within its equity and debt markets.
During the Saudi Capital Market Forum in Riyadh, Omar El-Amine, the head of Investment Banking for J.P. Morgan in Saudi Arabia, provided valuable insights into the Kingdom’s investment appeal. He cited the country’s wide-ranging socio-economic changes and legislative improvements as pivotal factors contributing to its heightened global profile.
Saudi Arabia stands out as an exciting, compelling investment story for our investors from the region or globally,
El-Amine stated. He emphasized the strategic, long-term structural story shaped by socio-economic transformation and implementation of regulatory reforms that enhance Saudi Arabia’s global presence.
El-Amine also noted the Saudi stock market as a reliable gauge of the economy’s vitality and its broad and dynamic economic base.
He stressed that the performance of Saudi Arabia’s equity and debt markets mirrors the country’s solid economic growth. The successful initial public offerings (IPOs) in the region serve as a testament to the positive sentiment regarding its financial future.
Highlighting the success of recent IPOs, El-Amine observed, All the IPOs that have taken place in Saudi Arabia have performed plus 60, 70 percent in the last 12 months, which is a testimony of the strength of this market.
He contrasted this with other emerging or international markets that have seen negative or merely neutral performance.
El-Amine disclosed J.P. Morgan’s intent to engage actively in the Kingdom’s forthcoming IPOs scheduled for 2024 and 2025, underscoring a bullish perspective on the market’s trajectory.
He also drew comparisons between Saudi Arabia’s development and other emerging markets, remarking on demographic growth and the adoption of new sectors. However, he was quick to point out the distinctive features that distinguish the Kingdom, such as its economy’s size, high GDP per capita, stable currency, and low debt-to-GDP ratio, all of which render the Saudi macroeconomic climate exceedingly appealing to investors.
El-Amine lauded the forum for its role in cultivating opportunities and facilitating dialogue among investors, market frontrunners, and representatives from key institutions like Tadawul and the Capital Market Authority.
He concluded by outlining J.P. Morgan’s goals to deepen its grasp of critical industry performance metrics and objectives, enhance partnerships with market participants, and network with counterparts from various financial entities.