The Global Investment Destination
The Global Investment Destination
Message from the Chairman
Eng. Khalid Abdullah Al-Hussan
Chairman of the Board of Directors
Message from the CEO
Mohammed Sulaiman Al Rumaih
CEO Saudi Exchange
Shared objectives
Saudi Vision 2030 is a transformative blueprint designed to diversify the Kingdom of Saudi Arabia's economy and reduce its dependency on oil. This strategic framework encompasses a wide range of objectives, including enhancing public service sectors such as health, education, infrastructure, recreation, and tourism. It aims to create a vibrant society, a thriving economy – underpinned by a strong private sector. These objectives mirror those of the Saudi Exchange.
Economic Diversification
By fostering a robust capital market, the Exchange is central to achieving Vision 2030's economic diversification goals. It attracts both local and international investors, thereby reducing reliance on oil revenues. It supports many sectors beyond oil and gas – diversification that is crucial for creating a more resilient economy capable of withstanding global economic fluctuations.
Enabling Growth
The Saudi Exchange has experienced consistent growth in market capitalisation and listings over recent years. As of September 2024, the market capitalisation stood at $2.694 trillion. This growth reflects investor confidence and the successful implementation of Vision 2030 - enhancing market transparency and accessibility.
Regulatory Modernization
The Capital Markets Authority (CMA) plays a pivotal role in regulating and overseeing the Saudi Exchange. It ensures that the market operates efficiently and transparently while protecting investor interests. Under Vision 2030, the CMA has introduced numerous initiatives to modernize the Saudi Exchange. These include adopting advanced technologies for trading and settlement processes and implementing stringent corporate governance standards. These efforts have not only improved market efficiency but also positioned the Saudi Exchange as a leading financial hub in the region.
Supporting Localization and Entrepreneurship
Vision 2030 emphasizes building a vibrant private sector that can drive economic growth and innovation. To encourage localisation, Vision 2030 promotes policies that develop local supply chains and increase employment opportunities for Saudi nationals. This includes setting quotas for employing Saudis in various sectors and providing government scholarships for education abroad. Moreover, Vision 2030 supports entrepreneurialism by creating an ecosystem that nurtures startups and SMEs through access to capital markets via the Exchange. This provides home grown businesses with opportunities to raise funds efficiently while offering investors from across the region and globally with diverse investment options in Saudi businesses.
A Blueprint for a Sustainable Economy
Saudi Vision 2030 is guiding Saudi Arabia towards a diversified economy enriched by innovation, enterprise, and entrepreneurialism. The Saudi Stock Exchange supports this by fostering economic diversification, attracting inward investment, ensuring robust regulatory oversight through the CMA, and enhancing market effectiveness with multiplier effects that benefit both local businesses and international investors. Through localisation incentives and support for entrepreneurship and innovation, Vision 2030 sets a path towards achieving sustainable economic growth for the Kingdom. The IPOs showcased in this book illustrate how the nation’s leadership has enabled these enterprises to thrive while contributing significantly to Saudi Arabia's economic diversification efforts.
NEOM
A Visionary Region for the Future
NEOM is a sustainable region located in northwest Saudi Arabia, also known as ‘the land of the future.’ As part of Saudi Vision 2030, this ambitious initiative comprises a range of developments, sectors and projects which seek to redefine business, conservation and livability. Occupying an area of 26,500 square kilometers, NEOM is strategically located along the Red Sea coast at the crossroads of three continents, providing a unique blend of natural beauty, advanced technology and prime access to global markets.
Vision
The land of the future, where the greatest minds and best talent are empowered to embody pioneering ideas and exceed boundaries in a world inspired by imagination.
Sector Companies
NEOM has launched sector companies including the Energy and Water company Enowa, the technology and digital company Tonomus and the food company Topian.
NEOM Investment Fund
NEOM Investment Fund (NIF) is the strategic investment arm of NEOM, supporting the growth of its economic sectors through the development of new commercial businesses. NIF backs game-changing ideas and strategic technologies to create the global champions of tomorrow. The fund partners with likeminded innovative companies, investors and entrepreneurs.
Red Sea Global
A Vision for Sustainable Tourism
Red Sea Global (RSG) is a transformative development initiative in Saudi Arabia designed to set new standards in sustainable and regenerative tourism. As part of Saudi Arabia's Vision 2030, RSG aims to create luxury tourism destinations that harmonise with the natural environment and enhance the well-being of communities and ecosystems.
Vision
Red Sea Global envisions becoming the world's most responsible developer by establishing global standards that transform built environments into catalysts for social and ecological change.
Mission
RSG is dedicated to acting as a change agent by collaborating with leading global minds to innovate and redefine industry boundaries, creating a better world for people and the planet.
Values
- Commitment to preserving and enhancing the natural environment.
- Increasing opportunities nationally and within local communities
- Leading in responsible tourism and sustainable development.
- Emphasising respect, collaboration, and continuous operational improvement.
The Saudi Exchange Ecosystem
The Saudi Exchange ecosystem is instrumental in attracting international investment and fostering economic growth.
The Saudi Exchange, or Tadawul, stands as a vital pillar in Saudi Arabia's Vision 2030, which seeks to transform the Kingdom into a diversified and sustainable economy. As the largest stock exchange in the Middle East and North Africa (MENA) region, Tadawul is instrumental in attracting international investment and fostering economic growth. Its strategic initiatives and reforms are designed to elevate the Kingdom's status as a global financial hub.
The main market of the Saudi Exchange is a dynamic platform hosting some of the largest companies in the world, including the oil giant Saudi Aramco. The historic initial public offering (IPO) of Aramco in December 2019 marked a significant milestone, raising $25.6 billion and valuing the company at $1.7 trillion. This event not only underscored the Exchange's global significance but also highlighted its potential to attract substantial foreign investments. As of 2023, the market capitalisation of the Saudi Exchange was approximately $2.9 trillion, reflecting its robust position in global capital markets.
Introduced in 2017, the Nomu Parallel Market serves as an alternative platform tailored for small and medium-sized enterprises (SMEs). With more flexible listing requirements compared to the main market, Nomu is designed to support emerging companies in accessing capital markets. This initiative aligns with Saudi Arabia's broader economic strategy to increase private sector contributions to GDP from 40% to 65% by 2030. By facilitating easier access to capital, Nomu empowers SMEs to expand their operations and contribute significantly to economic diversification.
The Sukuk and bond market is a critical segment of the Saudi Exchange, offering Shariah-compliant financial instruments that attract both domestic and international investors. This market plays a pivotal role in financing government projects and corporate expansions, aligning with Saudi Arabia's strategic objective to diversify its economy and reduce reliance on oil revenues. The development of this market segment underscores the Kingdom's commitment to providing diverse investment opportunities while adhering to Islamic financial principles.
The main market of the Saudi Exchange is a dynamic platform hosting some of the largest companies in the world, including the oil giant Saudi Aramco. The historic initial public offering (IPO) of Aramco in December 2019 marked a significant milestone, raising $25.6 billion and valuing the company at $1.7 trillion. This event not only underscored the Exchange's global significance but also highlighted its potential to attract substantial foreign investments. The total Market Capitalization at the end of the year 2024 reached SAR 10,200.24 billion (US$ 2,720.06 billion).
Introduced in 2017, the Nomu Parallel Market serves as an alternative platform tailored for small and medium-sized enterprises (SMEs). With more flexible listing requirements compared to the main market, Nomu is designed to support emerging companies in accessing capital markets. This initiative aligns with Saudi Arabia's broader economic strategy to increase private sector contributions to GDP from 40% to 65% by 2030. By facilitating easier access to capital, Nomu empowers SMEs to expand their operations and contribute significantly to economic diversification.
The Sukuk and bond market is a critical segment of the Saudi Exchange, offering Shariah-compliant financial instruments that attract both domestic and international investors. This market plays a pivotal role in financing government projects and corporate expansions, aligning with Saudi Arabia's strategic objective to diversify its economy and reduce reliance on oil revenues. The development of this market segment underscores the Kingdom's commitment to providing diverse investment opportunities while adhering to Islamic financial principles.
Recent Innovations
Wamid: Launch of Liqaa
In 2023, Wamid, the innovation branch of the Saudi Tadawul Group, introduced "Liqaa," a cutting-edge platform designed to enhance stakeholder meetings. This new service caters to both listed and non-listed companies, as well as corporations and government bodies, by providing a secure digital environment for conducting hybrid meetings.
Derivatives Market
In 2020, Tadawul launched its first derivatives market, introducing MT30 index futures trading. This significant development provides investors with new hedging tools and enhances market liquidity. The introduction of derivatives is part of Tadawul's broader strategy to align with international best practices and attract global investors by offering sophisticated financial instruments that cater to diverse investment needs.
Exchange-Traded Funds (ETFs)
Exchange-Traded Funds (ETFs) have gained substantial traction on the Saudi Exchange, offering investors diversified exposure to various sectors and indices. The growth of ETFs is integral to Tadawul's strategy to integrate Saudi capital markets into the global financial system. By providing more options for both institutional and retail investors, ETFs contribute to increased market participation and liquidity.
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