Saudi Capital Market Authority unveils 2024-2026 strategy to boost global market position and protect investors

Mohammed bin Abdullah Elkuwaiz, Chairman of the Saudi Capital Market Authority (CMA), said, “Through our previous strategies, we have achieved many ambitious goals for our financial market, positioning it as one of the ten largest markets globally. Our newly launched strategy is designed to build on that success, further supporting the financial market’s role in economic financing and growth.”

Elkuwaiz emphasised key components of the updated strategy, stating, “Our focus includes developing a vibrant debt market, enhancing the asset management industry to compete internationally, attracting greater investment into the national economy, and fostering innovation in the stock market and financial technology sectors, positioning Saudi Arabia as a regional leader.”

He also underscored the Authority’s commitment to investor protection, noting, “With a steady increase in enforcement actions and compensation for affected parties in recent years, we are dedicating a core pillar of our new strategy to protecting investors. Trust is fundamental to any successful market, and safeguarding rights and assets is crucial for all participants.”

On September 12, 2024, the CMA announced its strategic plan for 2024-2026, built on three key pillars and encompassing nine strategic objectives.

The first pillar focuses on activating the financial market’s role in financing and investment, emphasising the stock market and equity financing. The second pillar aims to empower financial market infrastructure by supporting financial institutions and fostering financial technology innovation. The third pillar centres on investor protection, aiming to enhance transparency, streamline compensation processes, and strengthen enforcement mechanisms.

The strategy includes more than 40 initiatives, such as improving regulatory frameworks for public offerings and listings, refining investment fund regulations, attracting international investors to the Saudi market, implementing open finance in the financial sector, and strengthening corporate governance regulations. The plan also seeks to improve procedures for class-action compensation.

The CMA’s previous strategic plan (2021-2023) delivered significant achievements, notably the surge in listings on the Saudi stock exchange, where the number of listed companies grew by 52%, from 204 in 2019 to over 310 by the end of 2023.

The asset management industry also saw unprecedented growth, with assets under management rising 74% from 500 billion riyals in 2019 to 871 billion riyals in 2023. International investments in various asset classes—stocks, bonds, debt instruments, and funds—reached 480 billion riyals by the end of 2023, up 88% from 259 billion riyals in 2019.