Capital Market Authority issues QSB for Q4 2022

The Capital Market Authority (“CMA”) issued the Quarterly Statistical Bulletin (QSB) for the fourth quarter (Q4) of 2022. Through this bulletin, the CMA aims to provide statistical information and data about the Saudi capital market that is important for investors, market analysts, and academic and student researchers. Also, the CMA aims to raise the level of transparency and disclosure and stimulates and develop investment in the capital market.

QSB provides a variety of data on the Saudi capital market including Initial Public Offerings (IPOs), Equity, Debt Instruments, and Investment Funds in addition to data regarding Capital Market Institutions, Listed Companies and authorized Financial Technology (FinTech) companies, and further, a full chapter about Corporate Governance.

QSB data showed that the number of Listed Companies on the main market (TASI) reached to 223 companies, with an increase of 6% in Q4 of 2022, compared to 210 companies in Q4 of 2021. While Listed Companies on the parallel market “Nomu” reached to 46 companies, with an increase of 229%, compared to 14 companies in the same period of 2021 or a surge of 8 companies at a rate of 21% of the parallel market listed-companies in Q3 of 2022, as the companies’ number was then 38 only.

The CMA approved the offering of 7 companies in the main market and 20 companies in “Nomu” during Q4 of 2022. 4 offers and listing requests in the main market, in addition to the other 79 in “Nomu”, are still under study during the same period.

As for the value of ownership in the main market, the value of the qualified foreign investors’ (QFIs) ownership surged to 10% at SAR 270.97 billion in Q4 of 2022, compared to SAR 245.9 billion in Q4 of 2021.

As for the investor’s classification, according to the investment behavior; the value of the institutional investors’ ownership amounted to 96.20% in Q4 of 2022, compared to 95.84% in Q4 of 2021.

The number of Investment Funds hit a new record and increased to 941 funds, the highest in history, after an increase of 25% in Q4 of 2022, when compared with the same period of 2021, including 255 public funds and 686 private funds, compared to 256 and 495 funds respectively in Q4 of 2021.

The number of the public and private investment funds subscribers amounted to 26% to reach 677,155 in Q4 of 2022, compared to 536,405 by the same period of 2021.

The biggest number of public and private investment funds subscribers were in the operating funds in the real estate sector, as the subscribers of the real estate investment traded funds represented 46% of the total subscribers in public investment funds while the subscribers of the real estate funds represented 73% of the total subscribers in private investment funds.

The asset value of Portfolios under Management raised at about 13% reaching to SAR 265.22 billion in Q4 of 2022, compared to SAR 234.78 billion in Q4 of 2021. The local Equity represented about 46% of the total assets of the Portfolios under Management reaching to SAR 120.97 billion in Q4 of 2022, as the local Equity in the portfolios decreased at about 10%, compared to SAR 135.03 billion in the same period of 2021. The Investment Funds stake represented 23% with an increase of 54% reaching to SAR 62.28 billion, compared to SAR 40.54 billion in Q4 of 2021.

The Capital Market Institutions licensed by the CMA hit a record rate (the highest in history) of about 61.5% to reach SAR 2.1 billion as net profit in Q4 of 2022, compared to SAR 1.3 billion in Q4 of 2021.

The Capital Market Institutions revenues climbed 30% reaching to SAR 3.82 billion in Q4 of 2022 (highest record in the history of Capital Market Institutions), when compared to Q4 of 2021. The asset management revenues represented the biggest ratio of the aggregate revenues of the Capital Market Institutions at 30.48%, followed by the investments activity at 26.15% and investment banking at 13.45%. The remaining ratio was divided on other activities, including other revenues, dealing and custody at 13.21%, 12.34% and 4.38% respectively.

As for the Corporate Governance, 51 general assemblies, attended by 10,176 shareholders, were held in Q4 of 2022, discussing 361 items of which only 4 items were rejected. The number of the non-executive board chairmen reached to 249, with their 214 non-executive vice chairmen and 28 executive vice chairmen, 1227 non-executive board members, and 152 executive board members.

Concerning the Financial Technology (FinTech) Companies, the number of authorized FinTech in the Equity Crowd Funding platforms amounted to 5 companies in Q4 of 2022, and the aggregated funds through Equity Crowd Funding platforms reached to SAR 25.50 million. A number of 52 institutional clients, 2501 qualified clients, and about 68,000 individual clients benefited from the services of FinTech companies.