Seventh Globally

The two stock markets in the kingdom of Saudi Arabia, the main “Tasi” and the parallel “nomw”, were able to record an initial subscription yield of almost 8 billion riyals (two billion dollars), and the addition of 320 million new shares, during the first half of 2024, after witnessing a significant increase in the number of initial public offerings, amounting to 8 subscriptions in “Tasi”, through which it collected about 7.53 billion riyals, across 300 million shares, an increase of 163% over the similar period of 2023, and with revenues estimated to increase by about 4.67 billion riyals (1.2 billion dollars), Saudi Arabia ranks seventh globally in the Register of initial public offerings on global stock exchanges, and with a share of 4.1% of the total global offerings.

The offerings of the Middle East and North Africa focused on Saudi Arabia, after it acquired half of the region’s 4.4 billion dollars, taking into account the decline in revenue in the region by about 22% year-on-year, according to preliminary data from the World Federation of stock exchanges, and the report of the British company “EY”.

The Saudi stock market is facing a new stage that pushes it to come out strongly to New Horizons, and it is on the path of achieving the goals of the “Saudi Vision 2030”, within the framework of increasing the number of companies listed on the stock market, raising the number of shares traded, and increasing the opportunities available for investment through diversifying companies in all sectors.the increasing theses in the Saudi market contribute to increasing and diversifying investment tools and opportunities and finding alternatives for investors in all types of sectors and achieving their investment goals, whether long or short term.

Perhaps the most important of which is the abolition of investment restrictions stipulated in the rules governing the investment of qualified foreign financial institutions in listed shares by allowing foreign investors to own larger shares, provided that these shares do not reach 10% of the shares of any source per investor, as well as encouraging owners of small companies to obtain financing through new tools for expansion and growth of business and activity, raising the size of economic contribution to the national economy of the company after listing on the market, in addition to attracting foreign investments and increasing cash flows from abroad to support This is an important investment opportunity for many investors looking for companies with rapid growth and development, due to the great transformation that the kingdom of Saudi Arabia is witnessing.

Saudi Arabia is working to make its financial market the main market regionally and one of the ten most important markets globally, through the financial sector development program, which focuses on raising the size, depth and development of the Saudi capital markets, so that it is an advanced and attractive market for local and foreign investment, enabling it to play a pivotal role in the development of the national economy and diversify its sources of income.

It is noteworthy that foreign capital flows to the Saudi market have increased from almost zero in 2016 to 106 billion dollars currently, as these flows were large in a short period, pointing to regulatory reforms as well as the most important aspect is communicating with international investors and inviting them to invest in the kingdom, according to the statements of the CEO of Saudi Tadawul Group, Engineer Khalid al-Hussan, at the second dialogue session at the Financial Markets Forum 2024.

By : Mohammed Hassan Mohammed Al-Naimi