Saudi capital markets shine at FII9 with regulatory, investor, and tech focus

31/10/2025 06:57 AST

The balance of capital markets, investor confidence, and Saudi Arabia's market performance took center stage at the ninth Future Investment Initiative conference.

Speaking during the event, Khalid Al-Hussan, CEO of the Saudi Tadawul Group, said the group maintains a high level of professionalism and transparency as an institutional force in the Kingdom's market, supported by both local and international investors and increased capital inflows, according to the Saudi Press Agency.

He highlighted the vast opportunities in Saudi capital markets, noting that the Kingdom hosts two markets with more than 380 listed companies, multi-billion-dollar investments, and several active financing platforms - placing Saudi Arabia among the world's top 10 financial markets.

"Regarding the regulatory environment, Al-Hussan said it continues to evolve under Vision 2030, with efforts to broaden access to Saudi markets, deepen liquidity, and provide diverse investment alternatives," SPA reported

The Tadawul CEO emphasized that expanding market accessibility remains a key pillar, adding that regulations are developing in response to growing demand and new capital inflows.

He revealed that investments in the Kingdom have exceeded $110 billion, with more than 4,400 new market participants. "These changes will enhance access for a broader base of investors over the medium and long term, driven by improved regulation and heightened investor interest in Saudi markets."

He also underlined the importance of technology and innovation for future growth, noting the growing role of data-driven innovations.

Technology, he said, has become a national priority, with efforts underway to modernize capital market infrastructure through digitalization, the integration of fintech firms, and the adoption of advanced data analytics platforms.

Meanwhile, Abdulmajeed Al-Haqbani, head of securities investments at the Public Investment Fund, said the Saudi market ranks first in the Arab world in terms of market capitalization and liquidity.

He pointed to significant legislative progress compared to previous years and the market's ongoing commitment to innovation and the development of new financial products.

Al-Haqbani noted that the balance achieved in capital markets between regulators and international investor confidence is beginning to yield positive results, describing the PIF as a cornerstone in supporting the growth of Saudi Arabia's capital markets.

"He added that the Saudi economy remains strong and well-capitalized, with substantial financial leaps in recent years - total capital flows rose from SR1 trillion to SR2 trillion in 2024, while the number of listed companies grew from 199 to more than 260. The total market value increased by 3.5 percent in January 2024," SPA reported, citing Al- Haqbani.

On consistent investment strategies, Al-Haqbani said they serve as a key asset, revealing that SR3 billion to SR4 billion has been allocated to systematic strategies, representing 9 percent of targets, with plans to reach 20 percent.

He noted that systematic strategies have grown by 8 percent compared to traditional approaches, underscoring the positive impact of artificial intelligence, data, and advanced technologies that are reshaping investor perceptions of regional and Saudi markets.

Arab News