Saudi Arabia has achieved advanced ranks in the indicators related to the financial market, according to the World Competitiveness Yearbook issued by the International Institute for Management Development (IMD) for the year 2022.
The Kingdom’s ranking rose in 9 indicators out of 12 indicators related to financial markets, while 3 indicators maintained the same arrangement compared to 2021.
According to the report, the Kingdom ranked first in the stock market capitalization index and the shareholders’ equity index, while it ranked second in the financial markets and venture capital indices, and ranked third in the indicators of initial public offering and boards of directors within the Group of Twenty, to be ranked in the One of the first three ranks in 6 out of 12 indicators related to the financial market at the level of the Group of Twenty.
This progress is a reflection of a number of efforts and measures taken in the financial market during the last period. To develop the financial market sector and apply the best international practices in it.
The authority confirmed that it is continuing its efforts to achieve the Kingdom’s Vision 2030, through the axis of a prosperous economy, to achieve advanced positions in a number of global competitiveness indicators.
Among the efforts and measures made by the Authority, its approval of the “Instructions for International Securities Depository Centers” that regulate the procedures for requests to link international securities depository centers with the Securities Depository Center Company (Edaa), in order to raise the efficiency and attractiveness of the Saudi financial market to foreign investors.
The offering and listing of real estate investment traded funds, closed-end investment funds and exchange-traded funds in the parallel market has also been enabled, which in turn will provide a modern financing channel for this type of fund of a size that does not meet the requirements of offering in the main market.
The efforts also included the development of many aspects related to the governance and disclosure of investment funds in order to raise the level of governance and transparency in the financial market in line with best practices and international standards.
It is noteworthy that the financial market succeeded during the last period in joining a number of international indices, which would make the local financial market of interest to foreign investors, as the Saudi financial market joined the FTSE Russell Emerging Markets Index for Government Bonds (FTSE Emerging). Markets Government Bond Index – EMGBI), as a result of the joint efforts between the Capital Market Authority and all relevant authorities.
It is expected that this accession will contribute to expanding the base of investors in the financial market, improving its levels of liquidity, and attracting the liquidity of foreign investors who follow the global indicators of the Saudi market.
