Saudi Arabia’s Financial Market Ranks Third Among G20 Nations
Saudi Arabia’s financial market has made significant strides in recent years, ranking third among G20 nations in competitiveness indicators in 2023, according to the International Institute for Management Development’s World Competitiveness Yearbook. The Kingdom’s performance is a testament to the ongoing efforts of the Capital Market Authority (CMA) to implement global best practices, with the country ranking first in the corporate boards index among G20 countries.
Capital Markets and Shareholders’ Rights
Saudi Arabia ranked second in capital markets, shareholders’ rights, and venture capital indices among G20 countries. The country’s achievement is the result of the CMA’s continued efforts to improve and develop the capital market sector by implementing relevant global best practices. The authority played a crucial role in approving regulations for securities exchanges, depository centers, and Shariah governance in other capital market institutions.
Companies Law for Listed Joint Stock Companies
The CMA’s role in developing the Companies Law for listed joint stock companies improved the business environment, making it conducive to additional investments. The Saudi capital market recorded a flurry of initial public offerings in 2022, with 49 listings and SR40 billion ($10.66 billion) raised in equity capital, the highest number in any single year, barring 2019 when Saudi Arabian Oil Co. was listed.
Stock Market Capitalization Index
Saudi Arabia ranked third globally in the stock market capitalization index, surpassing advanced nations like Japan, India, Germany, the UK, China, and the US. The Kingdom also topped all Arab nations participating in the report in nine of the 12 indices.
Efforts to Establish an Advanced Capital Market
The CMA aims to establish an advanced capital market that is open to the world and capable of attracting local and international capital, playing an efficient and pivotal role in meeting the economy’s funding requirements. The authority’s continued efforts to improve and develop the capital market sector have resulted in Saudi Arabia’s financial market ranking third among G20 nations in competitiveness indicators.
Conclusion
Saudi Arabia’s financial market has made significant strides in recent years, ranking third among G20 nations in competitiveness indicators in 2023. The Kingdom’s performance is a testament to the ongoing efforts of the CMA to implement global best practices. The authority’s role in approving regulations for securities exchanges, depository centers, and Shariah governance in other capital market institutions has improved the business environment, making it conducive to additional investments. The CMA aims to establish an advanced capital market that is open to the world and capable of attracting local and international capital, playing an efficient and pivotal role in meeting the economy’s funding requirements.