Saudi Gazette report

RIYADH —Mohammed Al-Quwaiz, chairman of the Capital Market Authority (CMA), announced the CMA’s Strategy for 2024-2026, which aims to build on the momentum to bolster its global standing and further cement the market's critical role in economic development. He also highlighted the success of previous CMA strategies in elevating the Saudi financial market among the top-ten globally.

Announced on September 12, 2024, the newest CMA strategic plan is structured around three main pillars and nine strategic objectives. The first pillar aims to activate the role of the capital market in financing and investment by enhancing the role of the stock market in financing, and developing the Sukuk and debt instruments market. It also aims to enable the growth of the asset management industry, and enhance capital market services to attract more international investments.

The second pillar aims to enable the financial market ecosystem, by supporting and enabling market institutions, and supporting FinTech in the financial sector.

The third pillar aims to protect the rights of investors by enhancing the level of transparency and supervision, facilitating means of compensation, and enhancing mechanisms for dealing with qualitative issues and enhancing the effectiveness of deterrence.

“Our new strategy emphasizes the creation of a robust debt market, the enhancement of the asset management industry to foster global competitiveness, the attraction of increased investments to the national economy, and the advancement of the stock market and financial technology sectors to lead regionally,” Al-Quwaiz said.

The CMA chief emphasized the importance of investor protection, saying: “Given the recent rise in penalties and compensation for market violations, our updated strategy includes a dedicated focus on safeguarding investors. Trust is vital for a successful market, and ensuring the protection of rights and funds is essential for maintaining investor confidence.”

The strategy features over 40 initiatives, including reforms to regulatory frameworks for market offerings and listings, development of investment fund regulations, attraction of international investors, implementation of open finance practices, updates to corporate governance regulations, and improvements to class action compensation procedures.

The previous strategic plan, 2021-2023, achieved significant milestones, including a 52 percent increase in listed companies, with the total rising to over 310 by the end of 2023; the number stood at 204 in 2019. The asset management sector also saw unprecedented growth, with its value climbing from SR500 billion in 2019 to SR871 billion in 2023, a 74 percent increase. International investments in various asset classes grew to over SR480 billion by the end of 2023, up from SR259 billion in 2019, marking an 88 percent increase.