The Capital Market Authority (CMA) has recently announced its strategy for 2024-2026, aiming to further solidify its global standing and enhance the role of the Saudi financial market in economic development. The new strategic plan focuses on three main pillars and nine strategic objectives. The first pillar aims to strengthen the role of the capital market in financing and investment by enhancing the stock market, developing the Sukuk and debt instruments market, and attracting more international investments. The second pillar focuses on enabling the financial market ecosystem by supporting market institutions and FinTech. The third pillar aims to protect the rights of investors by enhancing transparency and supervision, facilitating compensation, and improving deterrence mechanisms.
The CMA’s chairman, Mohammed Al-Quwaiz, highlighted the success of previous strategies in elevating the Saudi financial market to a top-ten global position. The new strategy emphasizes the creation of a robust debt market, the enhancement of the asset management industry for global competitiveness, attracting increased investments to the national economy, and leading regionally in the stock market and financial technology sectors. Al-Quwaiz emphasized the importance of investor protection, stating that safeguarding investors’ rights and funds is essential for maintaining investor confidence and trust in the market.
The strategy for 2024-2026 includes over 40 initiatives, such as regulatory framework reforms, development of investment fund regulations, attracting international investors, implementing open finance practices, updating corporate governance regulations, and improving class action compensation procedures. The previous strategic plan for 2021-2023 achieved significant milestones, including a 52 percent increase in listed companies, reaching over 310 by the end of 2023. Additionally, the asset management sector experienced significant growth, with its value increasing from SR500 billion in 2019 to SR871 billion in 2023, marking a 74 percent increase. International investments in various asset classes also grew to over SR480 billion by the end of 2023, up from SR259 billion in 2019, an 88 percent increase.
The CMA’s new strategic plan is focused on building on previous successes to further elevate the Saudi financial market and attract more international investments. By enhancing the stock market, developing the debt market and asset management industry, supporting FinTech, and ensuring investor protection, the CMA aims to strengthen the market’s critical role in economic development and increase its global competitiveness. The comprehensive strategy includes a range of initiatives to improve regulatory frameworks, attract international investors, and enhance market transparency and supervision.
With a strong emphasis on investor protection and market integrity, the CMA’s strategic plan for 2024-2026 aims to create a robust financial market ecosystem that supports sustainable economic growth and development. By implementing key initiatives across three main pillars and nine strategic objectives, the CMA seeks to further strengthen the Saudi financial market, attract more international investments, and solidify its position as a global financial hub. Through its commitment to transparency, investor rights, and market stability, the CMA is paving the way for a more dynamic and competitive financial sector in Saudi Arabia.
