Saudi stock market accounts for 90% of economy, exceeds CMA’s targets: Elkuwaiz

Mohammed Elkuwaiz, Chairman of the Capital Market Authority

The size of the Saudi stock market, excluding Aramco, accounts for more than 90% of the Kingdom’s economy, said Mohammed Elkuwaiz, Chairman of the Capital Market Authority (CMA).

The CMA's new strategy has three main pillars, namely increasing the number of IPOs, Elkuwaiz noted, adding it aims to ensure that the capital market serves the largest number of companies.

The CMA approved 10 listings in the primary market and Nomu Parallel Market.

The second development approach focuses on the development of the debt market, to be a strong contributor to the government and companies, along with the stock market, conventional finance channels (the banking sector) and opening additional channels.

The third approach aims to develop the financial derivatives market, ElKuwaiz said, expecting the futures and options market to launch soon.

Moreover, the Saudi stock market attracted SAR 120 billion in liquidity since joining global indices.

Meanwhile, the market’s experience with foreign investors is deemed positive, as the number of foreign investors is increasing monthly. The market is still at the beginning and targets any appropriate amendment as part of its ambition to boost the number of investors.

Individual investors are a main pillar in the Saudi market, ElKuwaiz affirmed, pointing to the necessity of investor diversification, as diversified investors and opinions balance the market and strengthen its stability.