Saudi Arabia’s Vision 2030 driving capital market growth across the Gulf: Moody’s
Saudi Arabia’s economic diversification strategy is transforming local capital markets and driving regional growth, positioning the Gulf Cooperation Council as an emerging financial hub, according to a Moody’s report.
The Kingdom’s ambitious Vision 2030 plan is reshaping the nation’s financial landscape, with capital markets crucial for funding large-scale investment projects and attracting global investors. The expansion of Gulf capital markets is being driven by economic diversification and structural reforms.
Vision 2030 has accelerated investment in key non-oil sectors, creating new opportunities fueling market growth. Moody’s analysis aligns with recent reports that highlight the significant growth of Saudi Arabia’s capital market. Over the past five years, the Kingdom raised $274 billion, with $130 billion from US dollar-denominated issuances and $144 billion locally in Saudi riyals. Moreover, the Saudi Exchange experienced a 40 percent liquidity increase in 2024 compared to 2023.
Regulatory reforms are expected to further boost international equity investment by easing foreign ownership rules and new offering requirements, attracting both passive and active inflows and encouraging greater private sector participation.
These regulatory and operational enhancements have already led to the inclusion of the Saudi equity market in global indices, boosting liquidity and institutional investment, with further growth expected from increased initial public offerings, the study stated.
Private credit markets are also expected to grow as investor appetite for alternative investments rises.
Source: ARABNEWS
