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Chairman of the Capital Market Authority (CMA) Mohammed bin Abdullah Elkuwaiz has introduced new strategy to strengthen Saudi market’s global position.
Elkuwaiz highlighted the achievements of previous CMA strategies in elevating the Saudi financial market among the top-ten globally, and introduced the strategic plan for 2024-2026, which aims to further solidify Saudi Arabia market’s critical role in economic development.
The newest CMA strategic plan revolves around three main pillars and nine strategic objectives. The first pillar is designed to unlock the potential of the capital market in financing and investment by strengthening the role of the stock market in financing, developing the Sukuk and debt instruments market, fostering the asset management industry growth, and elevating capital market services to drive more international investments.
The second pillar focuses on enhancing the financial market ecosystem, by supporting the development of market institutions, and promoting FinTech innovation in the financial sector.
The third pillar aims to safeguard the investors’ rights by enhancing the transparency and supervision, facilitating accessible means of compensation, and improving mechanisms for addressing qualitative issues and enhancing deterrence.
Mohammed bin Abdullah Elkuwaiz Chairman – Capital Market Authority
“Our new strategy emphasizes the creation of a robust debt market, the enhancement of the asset management industry to foster global competitiveness, the attraction of increased investments to the national economy, and the advancement of the stock market and financial technology sectors to lead regionally. Given the recent rise in penalties and compensation for market violations, our updated strategy includes a dedicated focus on safeguarding investors. Trust is vital for a successful market, and ensuring the protection of rights and funds is essential for maintaining investor confidence.”
The strategy covers more than 40 initiatives. This includes regulatory frameworks reforms for market offerings and listings, development of investment fund regulations, attraction of international investors, adoption of open finance practices, updates to corporate governance regulations, and enhancements to class action compensation procedures.
The previous strategic plan, 2021-2023, achieved remarkable outcomes that the listed companies increased by 52 percent with the total rising to over 310 by 2023, compared to 204 in 2019. The asset management sector also achieved significant milestone, with its value skyrocketing by 74 percent, from SAR500 billion ($133.35billion) in 2019 to SAR871 billion ($232.23 billion) in 2023.
Additionally, international investments in various asset classes increased to over SAR480 billion ($128 billion) by the end of 2023, compared to SAR259 billion ($69.13 billion) in 2019, marking an 88 percent increase.
