Latest news with #capitalmarket
Argaam
2 days ago
- Business
- Argaam
Future development stages to focus on asset management: ElKuwaiz
Mohammed ElKuwaiz, Chairman of the Capital Market Authority (CMA), said the strength of the Saudi capital market showed a significant shift in its global development. Speaking at a panel discussion at Aseer Investment Forum on May 27, ElKuwaiz said the market is no longer viewed merely through the lens of investors, but also through the lens of entrepreneurs seeking funding. As a result, the market currently plays a dual role in both investment and financing. He added that the major leap witnessed by the capital market is evident in the remarkable increase in listings and offerings. In recent years, the number of listings in both the Main Market and Nomu reached nearly 40 and 50. Thus, the local market ranked eighth in the world in terms of market cap as well as the size of offerings and listings. He noted that the increase in listings was accompanied by diversity in sectors and corporate sizes, with 60% of listed companies in the market being small and medium-sized enterprises (SMEs). The Chairman also pointed out that this development included the diversity of investment and financing tools. "Today, we're talking about the stock market and the asset management industry, with investment funds surpassing SAR 1 trillion in assets under management (AUMS) in 2024." The debt instruments sector and the debt market are now nearly equal in size to the asset management sector. Additionally, the diversity of investor categories—including local, individual, international, and institutional investors—contributes to greater market stability, ElKuwaiz said. Saudi Arabia has the most mature stock market, and the next stages of development will focus on the asset management industry, which surpassed SAR 1 trillion, equivalent to roughly one-tenth of the local stock market cap of SAR 10 trillion. This demonstrates the significant growth potential for this sector in the coming period, whether in traditional assets such as equity and bond funds, real estate funds, or venture capital funds. The Chairman added the debt market in the Kingdom is smaller than the capital market, amounting to nearly SAR 1 trillion, compared to the equity market. However, in the past two years, the volume of financing through the debt market surpassed financing in the capital market, reflecting enormous upcoming financing opportunities.
Khaleej Times
4 days ago
- Business
- Khaleej Times
How can an investor protect his savings in India amid stock market volatility
Question: The Indian capital market has been on a roller coaster ride during the past few weeks as a result of the tariff war. How should an investor protect his savings during these turbulent times? ANSWER: Generally investors tend to hold back their investments during periods of high volatility in the equity markets. In such a scenario, investors having liquid cash have the option to go in for a Systematic Transfer Plan. This is done by transferring from a liquid or overnight fund to an equity fund over a period of time when the market settles down. The investor may decide on the frequency of transfer as he may be advised by his wealth managers. The benefit of using the STP route is that the money remains invested in a liquid fund which fetches a return on investment that is higher than the interest earned on a savings bank account. Another avenue for investment is in liquid Exchange Traded Funds where the surplus cash is parked. Over the last year, assets under management in liquid ETFs have risen 31 per cent from Rs172 billion to around Rs235 billion. The growing popularity of liquid ETFs has resulted in new launches of such funds especially by well-known financial services companies. As a debt product, liquid ETFs are not subject to the securities transaction tax and, in order to encourage investors to use this avenue for investment, several brokers waive their brokerage charges on buying and selling of ETFs. ETFs primarily invest in overnight instruments including Government securities and treasury bills, making them risk free and high on liquidity. Question: My son is specialising in technologies pertaining to AI. As I have a fairly comfortable home in India, he wants to return and look for a suitable opening in this field. Are there opportunities for leadership roles? ANSWER: AI leadership roles are in great demand in India and there was a significant jump in hiring in this space during the last one year. This increase correlates with the shift from pilot AI initiatives to scaled enterprise adoption, especially in healthcare and retail where data driven transformation is accelerating. The demand is driven by firms across IT, consulting, ecommerce, fintech, deeptech and GenAI focussed startups which are setting up AI centres of excellence in India. Companies are on a recruitment spree in relation to leadership talent for consulting-led engagements and for creating industry-specific AI solutions. The compensation packages are exceptionally superior, especially in Global Capability Centres (GCCs) set up by multinational companies in India. The demand for this talent is expected to double in the current financial year owing to rising strategic significance. Some business leaders refer to this as the new AI economy offering services across AI advisory, AI engineering and AI solutions. Leading companies have been hiring talent for positions which drive innovation. The objective of most companies is to nurture expertise across the entire AI value chain and drive AI-led reinvention for clients across various sectors. Question: The fast moving consumer goods industry has recorded a marginal growth according to research analysts. Will this have a dampening effect on the overall growth projections of the Indian economy for the current fiscal year 2025-26? ANSWER: Products manufactured by medium and small enterprises drove FMCG growth for the quarter ended 31st March, 2025. Rural markets outpaced urban centres, growing four times faster. To put it in perspective, rural markets grew by 8.4 per cent year on year, contributing almost 40 per cent of the overall consumer goods sold in India. Small manufacturers grew twice as fast than the overall FMCG market mainly on account of changing market dynamics and higher purchasing power in the hands of the rural masses. Inflation is coming down gradually and therefore consumption is expected to pick up in the current financial year 2025-26. According to leading FMCG companies like Nestle, Hindustan Unilever, Dabur and others, urban demand is likely to pick up in the third and fourth quarters of this financial year. The reduction in income tax outgo for the middle class tax payers is expected to give a further boost to consumption. Therefore, the GDP growth forecast of 6.4-6.6 per cent is considered to be realistic, given the fact that trade and exports are likely to increase in the next nine months of the current financial year as a result of bilateral trade treaties entered into by India with the United Kingdom and in the near future with the European Union and the United States of America. The writer is a practising lawyer, specialising in corporate and fiscal laws of India.
Argaam
5 days ago
- Business
- Argaam
CMA refers suspects to prosecutors over National Building IPO misconduct
The Capital Market Authority (CMA) referred several individuals to the Public Prosecution for allegedly manipulating the initial public offering (IPO) of National Building and Marketing Co. on the Nomu-Parallel Market. The suspects are accused of carrying out transactions intended to influence the coverage of the offering and to falsely meet the eligibility criteria for transitioning to the main market. The alleged actions were aimed at creating a misleading impression about the security and the company's compliance with the liquidity requirements for listing. For More IPOs The CMA said the suspects may have violated Article 49 of the Capital Market Law and Article 2 of the Market Conduct Regulations. The regulator reiterated its warning to all market participants that fraudulent, deceptive, and manipulative conduct constitutes a breach of capital market rules and may result in legal action and penalties. The CMA affirmed its commitment to holding violators accountable by monitoring market activity and using its powers to protect investors and ensure fairness, transparency, and efficiency in the Saudi capital market. The General Secretariat of the Committees for the Resolution of Securities Disputes will disclose the names of convicted individuals on its website once final rulings are issued.
Al Bawaba
5 days ago
- Business
- Al Bawaba
Boursa Kuwait recognized by Global Finance for its outstanding financial leadership in community sustainability
Boursa Kuwait was awarded the 'Best for Sustaining Communities – Middle East' award for 2025 by Global Finance as part of the magazine's Sustainable Finance and Investment Banking Awards ceremony in London, United Kingdom, on May 13, 2025. Global Finance's recognition of Boursa Kuwait reaffirms the company's unwavering commitment to the highest standards of environmental, social, and governance (ESG) implementation and reporting and adopting them within its operational framework. It also reflects Boursa Kuwait's strategic vision of embedding a culture of corporate sustainability through impactful initiatives that drive lasting, positive change in the community and support the development of a more transparent and efficient capital market. Adopting a comprehensive approach, Boursa Kuwait has supported social, educational, and environmental programs to empower various segments of the population and expand access to financial literacy. These initiatives are in full alignment with the objectives of Kuwait's National Development Plan, reinforcing the company's position as a key driver of sustainable development in the country. In 2024, Boursa Kuwait continued its commitment to supporting social and environmental programs in collaboration with local and international organizations. Throughout the year, the bourse sponsored 38 initiatives aimed at creating a lasting, positive impact on the community it serves, including numerous environmental programs and initiatives designed to empower women. Additionally, the company launched the inaugural edition of the 'Bell' initiative to raise financial literacy and awareness. This initiative aims to position financial education as a cornerstone for achieving financial stability, economic development, and social prosperity, in partnership with several distinguished local organizations. Commenting on the award, Boursa Kuwait's Senior Director of Marketing and Corporate Communications Mr. Naser Meshari Al-Sanousi stated, 'This international award stands as another testament to Boursa Kuwait's continued leadership in corporate sustainability and social responsibility. The company is proud to see its efforts recognized by a prestigious publication like Global Finance, a reflection of the international business community's confidence in our business model and our commitment to transparency and positive impact. Boursa Kuwait remains focused on strengthening strategic partnerships and advancing sustainable practices across Kuwait's financial sector.' 'Boursa Kuwait firmly believes that sustainability is a shared responsibility across all segments of society, and a unique opportunity to build a prosperous future for generations to come. On behalf of Boursa Kuwait, I would like to extend my sincere gratitude to Global Finance for this recognition, which serves as a strong motivator to continue innovating across our initiatives and delivering added value to the Kuwaiti community and the national economy,' he added. This marks the second time Boursa Kuwait has received this prestigious honor from Global Finance, following its initial win in 2023. The company was also named 'Best in Sustainability Transparency' for both 2023 and 2024, further underscoring its leadership in ESG disclosure and sustainable business practices. Since 2018, the company has won over 25 awards in sustainability from several internationally renowned institutions and publications. The Global Finance Sustainable Finance Awards recognize global, regional and local leadership in sustainable finance, commending the efforts of financial institutions that support and adopt initiatives aimed at mitigating the negative impacts of climate change and building a more sustainable future for humanity. Award recipients are selected based on their contributions to comprehensive sustainable finance, community support, resource management, transparency and reporting, as well as their overall commitment to sustainable financing. Boursa Kuwait's Corporate Sustainability (CS) strategy stipulates ensuring initiatives apply and fall in line with the company's corporate social responsibility (CSR) pillars, industry best practice standards and investor expectations, creating strong and sustainable partnerships that ultimately achieve success and allow Boursa Kuwait to leverage the capabilities and strengths of other companies or organizations that have experience in different fields, and integrating sustainability efforts with the company culture, to achieve longevity and an ongoing impact that is carried on and instilled in the day-to-day operations of the stock exchange. As part of the strategy, Boursa Kuwait has launched many initiatives in partnership with local and international organizations, focusing on support for nongovernmental organizations and charity programs, financial literacy and capital market awareness, the empowerment of women as well as environmental protection.
Globe and Mail
5 days ago
- Business
- Globe and Mail
SAR 423 Billion in Foreign Investments: Saudi Arabia Launches Offshore Securities Business License
RIYADH, Saudi Arabia, May 26, 2025 (GLOBE NEWSWIRE) -- Over the past decade, the Saudi Capital Market Authority (CMA) has methodically advanced the Kingdom's capital market reforms, gradually opening its financial markets to international investors. This transformation has attracted substantial global institutional interest, with foreign holdings reaching approximately SAR 423 billion by the end of 2024. The recent introduction of the Offshore Securities Business License underscores Saudi Arabia's ambition to establish itself as a leading regional and global financial center. The QFI program in 2015 was the first program to provide direct access into Saudi markets for foreign investors. Prior to the QFI program, foreign investors could only access Saudi equities through swap arrangements, once foreign institutions qualified as QFIs, the program created a direct way for foreign institutions to transact in the Saudi market, further expanding the overall market access. Since then, the CMA has gradually dismantled many of the restrictions that once limited foreign participation. In 2018, asset thresholds for QFI eligibility were lowered, per-investor ownership caps were raised from 5 to 10 percent, and the pool of eligible investors was expanded. Also, improvements to corporate governance, financial disclosure, and market infrastructure made Saudi Arabia's capital market more transparent and credible. These reforms helped the Kingdom secure inclusion in the MSCI and FTSE Russell emerging market indices in 2019, a development that catalyzed massive capital inflows. The impact was instant, QFI owned SAR 13.7 billion in Saudi market in 2018. That figure increased to SAR 134.48 billion in 2019, coinciding with index inclusion. By the end of 2024, foreign investors held about SAR 423 billion in equities—up from around SAR 86 billion just six years earlier. Beyond these broad reforms, the CMA has continued to refine foreign access. In January 2025, it published a landmark rule change permitting foreign ownership in Saudi-listed companies that own real estate assets in the holy cities of Makkah and Madinah. Previously, such ownership was prohibited due to restrictions on property in the two cities. Under the new regulation, non-Saudi investors—whether individuals or institutions—can now own up to 49% jointly of shares or convertible debt in these companies. The CMA also recently published a framework for a new offshore license, intended to allow financial institutions to conduct securities business through a regional headquarters. While still pending implementation, this initiative aims to position the Kingdom as a regional and global financial hub for securities. This Offshore Securities Business License will enable licensed institutions to carry out securities activities, as well as manage investment funds that invest in securities within the Kingdom. These services may be provided to foreign clients outside the Kingdom, in addition to a specified category of local clients. Additionally, the license will allow its holder to invest in the Saudi capital market without the need to meet the qualification requirements typically imposed on qualified foreign investors. In addition, this license will enable its holder the access to a broader client base, including transactions with sovereign investment funds such as the Public Investment Fund, which manages over SAR 3.5 trillion in assets in 2024, as well as pension funds within the Kingdom. The offshore licensees and structure also present other benefits to developing and establishing private investment funds in Saudi Arabia. Offshore licensees will have flexible contractual terms as they will focus on addressing a complex and sophisticated investment needs. Taken together, these reforms represent one of the most comprehensive efforts among emerging markets to integrate with global capital flows. The CMA's approach—measured, regulatory-driven, and clearly aligned with Vision 2030—has generated confidence among international investors. While challenges remain, particularly in implementation and investor onboarding processes, the trajectory is clear. Saudi Arabia is building a market that not only attracts foreign capital, but retains it through stability, structure, and institutional trust. As the offshore licensing regime moves toward activation, it stands as the latest signal that the Kingdom's financial sector is not just open—it is competing.
