Saudi Arabia’s debt market has doubled in value to SAR800 billion ($213.12 billion) since 2019, stated Mohammed Al-Quwaiz, chairman of the Capital Market Authority (CMA) and chairman of the Financial Academy‘s board of trustees, during his participation at the Debt Markets and Derivatives Forum 2024 (DMDF 2024).
Greater foreign investment
Despite this expansion, the debt market remains under 20 percent of the Saudi economy, offering significant room for further development.
Saudi banks had historically dominated the debt market. However, in recent years, a broader range of investors, including funds, insurance companies, and other specialized entities, have entered the market.
During the next phase in the debt market’s development, Saudi Arabia seeks to encourage greater foreign investment by joining more global indices and expanding the market’s scope beyond regulatory changes. Al-Quwaiz noted that the current favorable conditions in Saudi Arabia’s debt market make it an attractive option for foreign investors, particularly compared to the stock market.
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Debt Markets and Derivatives Forum 2024
For his part, executive director of the Financial Academy Mana Al-Khamsan, the forum’s organizer, explained that the forum’s agenda tackles two main themes: exploring the latest opportunities in the bond and Sukuk markets, and examining financial derivatives.
This year’s edition includes key partnerships and collaborations with leading entities including the Saudi Tadawul Group, the Chicago Stock Exchange, and the International Capital Market Association (ICMA).
The forum emphasizes long-term strategies to support the Kingdom’s financial sector in line with Saudi Vision 2030. Sessions focus on exploring the dynamics of financial markets with expert insights into current trends and future needs. The growing importance of Saudi Arabia’s debt and derivatives markets is particularly noteworthy, as these sectors have undergone significant regulatory and legal reforms in recent years.
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