Saudi debt market growing rapidly, more issuance expected: FTA CEO

Mana Alkhamsan, CEO of The Financial Academy (FTA)

The Financial Academy’s (FTA) CEO Mana Alkhamsan said that the debt and financial derivatives market in the Kingdom is witnessing rapid development and is expected to play a vital role in diversifying funding sources and improving liquidity.

In an interview with Argaam, Alkhamsan expected an increase in bond and sukuk issuances in the coming years to finance major projects, mainly in the infrastructure and energy sectors.

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He also projected a growth in the use of financial derivatives as a risk management tool, especially after activating the role of futures contracts and options. In addition, the CEO expected an increase in foreign investments in the Saudi market, driven by improvements in the regulatory environment and growing investor confidence.

Alkhamsan stated that the Debt Markets and Derivatives Forum 2024 (DMDF) seeks to enhance communication between decision-makers and capital market experts to discuss the latest developments in the securities market and to explore the opportunities available in the Saudi market. The platform will also highlight the transformations through dialogue sessions, focusing on future trends and challenges facing the markets.

Additionally, DMDF 2024 aims to raise awareness about the latest financial instruments and risk management to support the markets’ transparency and liquidity and enhance the Kingdom’s position as a leading investment destination at the regional and international levels through cooperation with local and international bodies such as the Saudi Tadawul Group, NYSE Chicago (the Chicago Stock Exchange) and the CFA.

Alkhamsan explained that The Financial Academy is following an advanced strategy to develop the professional certificates required in the Saudi capital market by providing advanced educational programs in cooperation with international organizations such as the International Capital Market Association and launching new certificates such as Introduction to the Saudi Capital Market.

Moreover, he stressed the importance of training national competencies and providing specialized training programs to develop financial skills in line with changing market requirements.