Reforms implemented by the Saudi Capital Market Authority and initiatives from Tadawul Group have resulted in an uptick in the market’s overall number of registered QFIs. By the end of April, there were 3,800 registered QFIs, 76 times more than in 2017, when there were only 50.
Foreign investment rose 16 per cent in 2023 to reach an all-time high of more than 400 billion riyals (US$106 billion).
“Saudi Arabia’s size and high levels of liquidity, coupled with its location at the heart of major trade routes and supply chains, make the kingdom an incredibly attractive market for investment today,” said Al Hussan.
“These factors – as well as our diverse investment products – have already helped us establish the Saudi capital market increasingly as a global investment destination of choice.”
Policymakers and regulators have slowly been aligning regulatory frameworks in Saudi Arabia with international standards and gaining inclusion in major global indices while also pursuing investor outreach.
“Continuing evolution of our market is central to our mission to become a global financial centre,” said Al Hussan.
Market capitalisation has risen 11 per cent over the past three years.
The effort includes improving market infrastructure to a global standard, supported by digital and technical capabilities, and continuing to invest in, grow and evolve Tadawul’s suite of products and services.
“The combination of Hong Kong’s technological innovation and Saudi Arabia’s vision for economic diversification brings unparalleled opportunities to learn from each other and cooperate,” Al Hussan said.
Hong Kong was the first international destination for Tadawul’s flagship Capital Markets Forum, which brought together about 300 investors and 650 delegates from the government, finance and business communities.
The event included more than 600 bilateral meetings to help companies and investors from both markets communicate and understand each other more effectively.
“The Capital Markets Forum in Hong Kong [was] a testament to the strengthening ties and interest between the two markets,” said Al Hussan.