Saudi capital market flourishes under Vision 2030
Saudi Arabia's capital market is thriving,
fueled by the transformative Vision 2030 and a rapidly growing economy,
according to Saud Al-Tassan, CEO of EFG Hermes Saudi Arabia.
Speaking with Arab
News at the Capital Market Forum in Riyadh, Al-Tassan emphasized the
distinctive strength of the Saudi stock market, which has become an
increasingly attractive venue for private companies looking to launch initial
public offerings (IPOs).
“The Saudi market is growing at a remarkable
rate, largely driven by the economy and the sweeping changes under Vision 2030.
We are in a transformational phase right now,” Al-Tassan stated.
He noted that one of the key factors behind the
Saudi market’s success is the strong local demand, which stands out compared to
other regional markets. Despite growing international interest, he highlighted
that local demand still dominates.
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“Although international investors are showing
strong interest, local demand continues to make up the majority of the market,”
Al-Tassan added.
EFG
Hermes Eyes Market Leadership
While Al-Tassan refrained from disclosing
specific future announcements, he confirmed that EFG Hermes is continuously
innovating and enhancing its services. "We are always looking for ways to
add value to our clients, and we’re excited to make some interesting
announcements soon,” he said.
Regarding securities lending, Al-Tassan
acknowledged that while it currently represents a small portion of EFG Hermes'
revenue in Saudi Arabia, it remains a strategic priority. “It’s part of our
evolution to offer a comprehensive range of services to our clients, and we
expect growth in this area in the years ahead,” he stated.
IPO
Market Experiences Unprecedented Growth
Saudi Arabia’s IPO market is witnessing an
extraordinary surge, with an increasing number of offerings under review by the
Capital Market Authority (CMA). EFG Hermes has been a key player in this
market, successfully closing multiple IPOs in 2024 and preparing an even larger
pipeline for 2025.
“The IPO market is thriving in Saudi Arabia.
Our pipeline with the CMA is growing rapidly, and we are excited about the many
offerings we will bring to market this year,” Al-Tassan said.
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He reaffirmed EFG Hermes’ leadership position
in equity capital markets across the Middle East, adding that the firm had a
particularly successful year in IPO advisory services in 2024. “This year, we
have an even larger pipeline and are optimistic it will be even more
successful.”
Al-Tassan also shared that the firm is working
on several major and highly sought-after IPOs. “There has been substantial
growth across both ECM and M&A segments from last year,” he noted.
Regulatory
Reforms and Foreign Investment Surge
Al-Tassan credited regulatory reforms and
government-backed initiatives for the market’s rapid advancement. “The
regulator has been instrumental in shaping the market into what it is today. We
expect a significant influx of foreign participation this year, driven by IPOs
and government-related company listings,” he said.
Debt
Market and Future Growth Prospects
While the debt market isn’t currently a major
revenue generator for EFG Hermes in Saudi Arabia, Al-Tassan emphasized its
growing importance for the future. “We anticipate that it will play a
significant role in our business in the years to come,” he explained.
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Looking forward,
Al-Tassan remains optimistic about the capital market's expansion, pointing to
Vision 2030 as a key catalyst. “As long as IPOs feature quality companies,
demand will remain strong. We don’t foresee a slowdown, and our robust pipeline
is a testament to ongoing investor interest,” he concluded.
Source: Arab News
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