Saudi Gazette report

RIYADH — Mohammed Al-Quwaiz, chairman of the Capital Market Authority (CMA) and chairman of the Financial Academy’s Board of Trustees, highlighted the impressive growth of the Saudi debt market, saying that the debt market has doubled in value to SR800 billion since 2019.

“Despite this expansion, the debt market remains under 20 percent of the Saudi economy, offering significant room for further development,” he said while inaugurating the Debt Markets and Derivatives Forum 2024 (DMDF 2024) in Riyadh on Sunday.

Al-Quwaiz noted that 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. The next phase in the debt market’s development would focus on encouraging greater foreign investment by joining more global indices and expanding the market’s scope beyond regulatory changes,” he said while noting 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.

Al-Quwaiz commended the Financial Academy's contributions to the sector, mainly through its training initiatives. In 2024 alone, the academy has trained more than 400 professionals in the debt market and continues to provide development programs for industry workers.

Executive Director of the Financial Academy Mana Al-Khamsan, the forum's organizer, welcomed participants, positioning the event as a key platform for financial market experts and decision-makers. He described the forum as instrumental in addressing emerging trends and shaping the future of the financial sector. Al-Khamsan explained that the forum’s agenda revolves around two main themes: exploring the latest opportunities in the bond and Sukuk markets and examining financial derivatives.

This year’s event stands out for its extensive partnerships, including collaborations with leading entities such as the Saudi Tadawul Group, the Chicago Stock Exchange, and the International Capital Market Association (ICMA). These partnerships provide a foundation for in-depth discussions on futures’ markets and related topics.

Al-Khamsan also announced the launch of a new professional certificate in partnership with ICMA, titled “Introduction to the Saudi Financial Market.” This certification aims to enhance participants’ understanding of Saudi financial markets, helping them deepen their knowledge and prepare for future developments.

The forum emphasizes long-term strategies to support the Kingdom’s financial sector in alignment with Saudi Vision 2030. Sessions focus on exploring the dynamics of financial markets, informed by expert insights into current trends and future needs. The growing importance of the debt and derivatives markets is particularly noteworthy, as these sectors have undergone significant regulatory and legal reforms in recent years.

The event represents a pivotal moment for Saudi financial markets by fostering performance improvements, increasing financial awareness, and promoting innovation in financial services. The forum provides value to specialists by offering tailored solutions to address the sector’s evolving needs. It also serves as a venue to highlight the financial requirements of markets and anticipate future directions.

The participation of international players such as the Chicago Stock Exchange reflects the forum’s global outlook. The collaboration between local, regional, and international entities underscores Saudi Arabia's commitment to developing a diversified and innovative financial sector. The forum blends global expertise with localized knowledge, facilitating efficient and impactful programs to meet the financial market's demands.

Al-Khamsan reiterated that the Financial Academy will continue to play a central role in supporting the sector’s growth through education, training, and certification programs. These initiatives will empower professionals in Saudi Arabia and help position the nation as a leader in financial services innovation on the global stage.