Imagine a financial landscape where innovation meets opportunity—this is the vision Saudi Arabia’s Capital Market Authority (CMA) is bringing to life with its ambitious strategy for 2024-2026. This plan is not just about numbers; it’s about transforming the Kingdom into a vibrant hub for global investors by developing a formidable debt market and elevating its asset management industry to new heights of international competitiveness.
Building a Transparent and Dynamic Market
At the heart of this strategy is a commitment to safeguarding investor rights through increased transparency and market integrity. With over 40 targeted initiatives, the CMA is set to revolutionize market growth and efficiency. A pivotal component of this approach involves enhancing the stock market’s role in capital raising, a move that promises to unlock a wealth of opportunities for investors.
To achieve these goals, the CMA plans to introduce special purpose acquisition companies in the parallel market and facilitate the issuance of Saudi depositary receipts. These initiatives are designed to diversify investment avenues, making the market more appealing to both local and international investors. As CMA Chairman Mohammed El-Kuwaiz noted, “Our new strategy emphasizes the creation of a robust debt market, the enhancement of the asset management industry, and the attraction of increased investments to the national economy.”
Aligning with Saudi Vision 2030
This forward-thinking plan is crafted to align with Saudi Vision 2030, supporting the national economy by fostering an advanced financial ecosystem and drawing in international investments. By focusing on transparency, innovation in financial technology, and expanded financing options, the strategy marks a significant step toward realizing the Vision’s ambitious goals.
Moreover, the CMA is taking strides to develop the sukuk and debt instruments market by establishing regulatory frameworks for green, social, and sustainable debt instruments. This aligns with the global trend towards environmental, social, and governance (ESG) criteria, further positioning Saudi Arabia as a leader in sustainable finance.
Empowering the Financial Market Ecosystem
Recognizing the transformative power of technology, the CMA is committed to fostering competition and efficiency within the financial sector. By promoting fintech growth and open finance applications, the strategy aims to integrate cutting-edge technologies into the financial market, enhancing operations and user experiences.
Building on past successes, which saw a remarkable 52 percent increase in listed companies from 2019 to 2023, the CMA’s new strategic plan is poised to attract even more foreign investors. By 2026, the Kingdom aims to establish itself as a regional and international financial leader, doubling the number of fintech-licensed companies and boosting the volume of managed assets.
In summary, Saudi Arabia’s Capital Market Authority is paving the way for a future where the Kingdom is a beacon for investors worldwide. Through comprehensive regulatory reforms, a focus on ESG principles, and a commitment to transparency and investor protection, the CMA is creating a sustainable and resilient market environment. This is more than a strategy; it’s an invitation to be part of Saudi Arabia’s rise as a global financial powerhouse.
