For the first time, AUM value in Saudi financial market exceeds trillion-riyal barrier by the end of 2024

The Capital Market Authority revealed that the value of assets under management in the Saudi financial market exceeded the trillion-riyal barrier for the first time by the end of 2024, achieving a growth rate of 20.9% compared to the previous year. The number of investment funds also increased to 1,549, while the number of subscribers to public and private funds reached more than 1.72 million, a 47% increase compared to 2023. The Capital Market Authority (CMA) issued its 2024 annual report, which reflected the continued momentum of growth and development of the Saudi financial market, achieving exceptional results and record numbers across various regulatory, legislative, and developmental aspects. This strengthens the Kingdom’s position as an attractive destination for local and international investment and reflects the rapid progress made towards the objectives of Saudi Vision 2030.

According to the CMA’s 2024 annual report, and with regard to regulatory, legislative, and developmental aspects of the market, the CMA approved during 2024 the Instructions for the Offering of Real Estate Contribution Certificates, which aim to regulate the registration and offering of real estate contribution certificates. The CMA also approved several amendments to a set of executive regulations, including the Capital Market Institutions Regulations, the Investment Accounts Instructions, and the Executive Regulations of the Companies Law for Listed Joint Stock Companies. It also approved amendments to the Rules for the Offering of Securities and Continuing Obligations. The CMA also focused on developing the sukuk and debt instruments market, which positively impacted the market through its adoption of the largest package of regulatory improvements since the launch of the sukuk and debt instruments market this year. These improvements included easing regulatory requirements and expanding the category of qualified investors.

According to the report, the total value of sukuk and debt instruments listed on the Saudi Stock Exchange reached SAR 663.5 billion by the end of 2024, compared to SAR 549.8 billion by the end of 2023, representing a growth of 20.6% during the year.

The year 2024 witnessed growth in public offerings and share registrations, with the CMA approving 60 applications, an increase of 36.4% compared to 2023, including 40 applications in the parallel market and 16 applications in the main market. A total of 44 listings were also implemented on both markets during the year, representing a continuation of the strong activity in the initial public offerings (IPOs). Regarding foreign investment, the Saudi financial market continued to record highs, with net foreign investment reaching SAR 218 billion by the end of 2024, compared to SAR 198 billion the previous year, a 10.1% increase. Foreign investor ownership also rose to SAR 423 billion, representing 11% of the total free float shares in the main market.

With regard to licensing and supervision of financial market institutions, the number of licensed institutions increased to 186 by the end of 2024. Revenues of financial market institutions increased by 29.6% compared to the previous year, reaching SAR 17 billion, with their profits reaching SAR 8.8 billion, an increase of 39.3% over the previous year. The report indicated that the Kingdom of Saudi Arabia leads among G20 countries in several international indicators related to the financial market, according to the 2024 IMD World Competitiveness Yearbook. These indicators include the Financial Markets Index, the Market Capitalization Index, the Shareholders’ Rights Index, and the Venture Capital Index. The Kingdom’s performance also increased in eight of the 12 indicators included in the book.

The report also confirmed the Authority’s continued implementation of investor protection tools, with 121 cases completed, while compensation for affected investors exceeded SAR 389 million, distributed among 921 beneficiaries. Meanwhile, the average litigation period decreased to 4.4 months, compared to 5.5 months in 2023. The Authority also issued enforceable decisions against 171 violators of the rules and regulations it is responsible for implementing, while following up on the implementation of 45 requests. For his part, Mohammed bin Abdullah Al-Quwaiz, Chairman of the Capital Market Authority, commented on the Authority’s 2024 Annual Report. He noted that the Authority adopted its strategic plan for the years 2024-2026 in 2024, in line with emerging economic changes. The plan includes nine objectives, divided into three strategic pillars: the first is activating the role of the financial market in financing and investment; the second is empowering the financial market system; and the third is protecting investor rights. He noted that the plan took into account a study and analysis of the financial market sector in all its aspects, and coordinated with stakeholders to identify areas for improvement and development to focus on. Al-Quwaiz explained that the annual report reflects the radical transformation the financial market is witnessing, emphasizing that the financial market witnessed developments during 2024 that contributed to strengthening the position of the Saudi financial market regionally and internationally. This is achieved through the size of managed assets and the value of holding funds and exchange-traded funds, which recorded record increases during 2024 compared to the previous year. This is in addition to the Authority’s efforts to deepen the market and implement regulatory improvements to expand the investor base, enhance liquidity and market stability, increase competitiveness, and achieve sustainable growth. This will enhance the performance of the Saudi financial market, raise its contribution to the GDP, and increase the market’s attractiveness to local and international investors, thus achieving the goals of Saudi Vision 2030.