The Saudi Capital Market highlights growth levels, regulatory enhancements, and increased investor appeal in its 2024 Annual Report

Zawya

20-05-2025

The Capital Market Authority (CMA) has issued its 2024 Annual Report, reflecting sustained momentum in the growth and development of the Saudi capital market. The report highlights exceptional achievements and record-breaking figures across various regulatory, legislative, and developmental areas, reinforcing the Kingdom's position as an attractive destination for both local and international investment and demonstrating the rapid progress toward the goals of Saudi Vision 2030.
According to CMA's 2024 Annual Report, the value of assets under management in the Saudi capital market exceeded one trillion SAR for the first time by the end of 2024, recording a growth rate of 20.9% compared to the previous year. The number of investment funds rose to 1,549, while the number of subscribers in public and private funds exceeded 1.72 million, an increase of 47% compared to 2023.
In terms of regulatory, legislative, and developmental aspects of the market, the CMA in 2024, approved the Instructions on the Offering of Real Estate Contributions Certificates, aimed at regulating the registration and offering of such certificates. It also approved several amendments to a set of regulations, including the Capital Market Institutions Regulations, the Investment Account Instructions, and the Implementing Regulation of the Companies Law for Listed Joint Stock Companies, in addition to amendments to the Rules on the Offer of Securities and Continuing Obligations.
The CMA has also prioritized the development of the sukuk and debt instruments market, which positively impacted the market through the approval of the largest set of regulatory enhancements since the market's inception. These included easing regulatory requirements and expanding the category of qualified investors.
According to the report, the total value of listed sukuk and debt instruments in the Saudi capital market reached SAR 663.5 billion by the end of 2024, compared to SAR 549.8 billion at the end of 2023, reflecting a growth rate of 20.6% over the year.
The year 2024 also witnessed growth in public offerings and equity registrations, with the CMA approving 60 applications, an increase of 36.4% compared to 2023, including 40 applications in the Parallel Market and 16 in the Main Market. A total of 44 listings were completed in both markets during the year, marking continued strong activity in IPOs.
In terms of foreign investment, the Saudi capital market continued to achieve record levels, with net foreign investments reaching SAR 218 billion by the end of 2024, compared to SAR 198 billion the previous year, an increase of 10.1%. The value of foreign ownership also rose to SAR 423 billion, representing 11% of the total free float shares in the Main Market.
In relation to the licensing and supervision of capital market institutions, the number of licensed institutions rose to 186 by the end of 2024. Revenues of capital market institutions increased by 29.6% compared to the previous year, reaching SAR 17 billion, while their profits grew by 39.3% to reach SAR 8.8 billion.
The report also highlighted Saudi Arabia's leading position among G20 countries in several international financial market indicators, according to the 2024 World Competitiveness Yearbook issued by the International Institute for Management Development (IMD). The Kingdom ranked first in the Capital Market Index, Stock Market Capitalization Index, Shareholders' Rights Index, and Venture Capital Index. Overall, Saudi Arabia saw improvements in 8 out of the 12 capital market related indicators included in the report.
The report also confirmed the CMA's continued efforts to enhance investor protection tools. In 2024, the CMA completed the handling of 121 cases, while compensation awarded to affected investors exceeded SAR 389 million, distributed among 921 beneficiaries. The average litigation period decreased to 4.4 months compared to 5.5 months in 2023. Additionally, the CMA issued enforceable decisions against 171 violators of the laws and regulations under its jurisdiction, and followed up on 45 enforcement requests.
His Excellency Mr. Mohammed bin Abdullah Elkuwaiz, Chairman of CMA, stated in his remarks on the CMA's 2024 Annual Report, that the CMA approved its strategic plan for the years 2024–2026, in line with emerging economic developments. The plan includes nine objectives distributed across three strategic pillars: the first focuses on activating the capital market's role in financing and investment; the second on empowering the capital market ecosystem; and the third on protecting investor rights. H.E. noted that the plan was developed based on a comprehensive analysis of the capital market sector and through alignment with stakeholders to identify key areas for improvement and development.
H.E. further explained that the annual report reflects the profound transformation taking place in the capital market, confirming that 2024 witnessed significant developments that contributed to enhancing the regional and global standing of the Saudi capital market. This was evident in the increase in assets under management, the value of fund of funds, and exchange-traded funds, all of which reached record levels compared to the previous year. These achievements, along with the CMA's efforts to deepen the market, introduce regulatory enhancements, expand the investor base, improve liquidity and market stability, and boost competitiveness, are driving sustainable growth. Additionally, enhancing the performance of the Saudi capital market, increase its contribution to GDP, and improve its attractiveness to both local and foreign investors, all in support of achieving the goals of Saudi Vision 2030.