Al-Quwaiz: Foreign Ownership in the Saudi Stock Market Grows 501% in 9 Years

By: Abeer Sufyani

Mohammed Al-Quwaiz, Chairman of the Capital Market Authority, revealed that foreign investor ownership in the Saudi stock market reached SAR 420 billion by the end of 2024, a growth rate of 501% since 2017. This was stated in the annual report of the Financial Sector Development Program 2024.

Al-Quwaiz stated that the asset management industry recorded an unprecedented increase, with the value of locally managed assets reaching SAR 1 trillion. This reflects efforts to strengthen the local asset industry through a strategy to increase the attractiveness of asset management in the Kingdom.

The sukuk and debt market in the Kingdom also recorded a growth of 123% by the end of 2024 since 2017. This is the result of the implementation of several strategic initiatives aimed at deepening the sukuk and debt market and enhancing liquidity. This has resulted in an increase in the number of issuances and issuers, along with a diversified investor base. Al-Quwaiz emphasized that the financial market system will continue its efforts to promote innovation and develop innovative models and solutions in the field of financial technology, contributing to improved access to the financial market and enhancing the satisfaction of investor needs.

It also helps support the national economic development movement by developing the financial sector and continuing to develop the Saudi financial market, while enhancing its ability to meet challenges and achieve its vision of becoming a major source of financing and investment for the development of the national economy and one of the most important financial markets in the world.

According to the report, the Capital Market Authority revealed its aspirations for 2025. The Authority plans four incentive targets, including enhancing the financial role of the financial market and enabling various companies to offer their shares and list them on the financial market. It also aims to support the development of new and promising sectors and provide financing channels for them to enhance their contribution to the Kingdom’s national economy.

The Authority also aims to enhance the attractiveness of the asset management industry in the Kingdom and enhance its competitiveness regionally and internationally by providing diverse investment products, developing the components of the investment environment, and adopting international practices in financial markets. It also works to continue developing the legislative and regulatory environment to deepen the sukuk and debt instrument market, thus contributing to enhancing its attractiveness, given the extreme importance of this market and its role as a fundamental element in the growth and activities of the economy, as it is one of the most important financing channels provided by the financial market to finance public and private sector projects.