Saudi’s growth story in focus at EFG Hermes London conference: Capital markets across the region — from Egypt to the UAE to Oman — are continuing to evolve, giving plenty of reason for optimism despite challenging regional dynamics, EFG Holding Group CEO Karim Awad said at the EFG Hermes Annual Conference in London earlier this week. Saudi Arabia and the UAE are continuing to lead the way regionally as we see “constantly evolving” capital markets, supported by “the vital role played by the Capital Markets Authority,” Awad said. This year’s edition of the conference has a “dedicated focus” on Saudi Arabia, zoning in on major themes in the Kingdom including the continuous growth and sophistication of Saudi capital markets, as well as the country’s booming real estate sector.

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“A story of transformation, innovation, and confidence.” That’s how Capital Market Authority (CMA) Board Commissioner Abdulaziz Abdulmohsen bin Hassan described Saudi’s capital markets journey over the past decade. Bin Hassan pointed out that, along with strong growth in several sectors of the economy including tourism, technology, and renewable energy, Saudi Arabia’s capital markets have also developed to foster a “thriving” environment for IPOs. “Today, Saudi Arabia’s capital market is the largest in MENA with a market cap exceeding USD 2.7 tn, representing 62% of the MENA region’s capitalization. But what sets us apart is not size — it’s our scale, liquidity, governance, and ambition.”

The IPO market speaks for itself: Saudi Arabia now sees an average of 40-50 IPOs each year, rising dramatically from an annual average of five to six debuts five years ago, CMA Deputy of Market Institution Raed Al Humaid said in a panel on the Kingdom’s growth story. This volume has positioned Saudi Arabia’s capital markets among the “top 10 [globally] when it comes to the number of IPOs,” supported by the introduction of key reforms such as streamlined listing regulations, Al Humaid said. Also expected to support the market’s growth is forthcoming SPAC regulations, which Al Humaid notes will provide “additional flexibility for issuances to go into the market.”

The country’s debt markets are also booming, doubling in value in five years to reach SAR 864 bn, compared to SAR 348 bn in 2019, according to Al Humaid. DCM fundraising — which currently stands at SAR 131 bn — has now surpassed the value of IPO equity fundraising, Al Humaid said. Saudi has already seen two public debt offerings this year, with another two expected by the end of 2025, Saudi Exchange CEO Mohammed Al Rumaih said. Next year, the exchange expects the number of debt offerings to hit the double digits, according to Al Rumaih.

What’s next? “Our next chapter is about deepening global connectivity,” bin Hassan said. “The CMA is introducing offshore business security licensing, enabling global institutions to serve their clients and key funds and sovereigns from Riyadh,” bin Hassan said, noting that this direction will help Riyadh take shape as “a preferred global capital hub” over the next few years.

ALSO- Keep an eye on the derivatives market, which the Saudi Exchange and CMA are working on revamping, after recently-launched futures and options trading “did not reach our targets,” Al Rumaih said. After working with international market makers to redesign these products’ specifications, the Saudi Exchange expects “this market to be very active,” which will bring in more liquidity and attract more investors in 2026.

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