Saudi Arabia advances in IMD's global financial market index
Saudi Arabia has advanced in the financial market index, according to the Global Competitiveness Report 2022 issued by the International Institute for Management Development (IMD), with the Kingdom’s ranking jumped nine indicators out of 12 indicators related to financial markets, while three indicators maintained the same ranking of 2021.
According to the report, the Kingdom ranked first in the stock market capitalization index and the shareholders' equity index, while it ranked second in the financial markets and venture capital indices, and ranked third in the initial public offering and boards of directors index within the G-20. With this new achievement, the Kingdom was positioned as one of the top three ranks in six out of 12 indicators related to the financial market at the G-20 level.
This progress is a reflection of the various efforts and measures taken in the financial market recently to develop the financial markets and apply the best international practices. The Capital Markets Authority (CMA) confirmed that it is continuing efforts to achieve the Kingdom's Vision 2030, aiming for a prosperous economy and advanced positions in several global competitiveness indices.
CMA cited its recent efforts and measures including its approval of the "Instructions for International Securities Depository Centers" that regulate the procedures for requests to link international securities depository centers with the Securities Depository Center Company (Edaa), to raise the efficiency and attractiveness of the Saudi financial market to foreign investors.
CMA also enabled the listing of real estate investment traded funds, closed-ended investment funds, and exchange-traded funds in the parallel market, which will provide a modern financing channel for this type of fund of a size that does not meet the requirements of offering in the main market. The efforts also included the development of many aspects related to governance and disclosure of investment funds to raise the level of governance and transparency in the financial market in line with best practices and international standards.
The Capital Markets Authority has succeeded in joining several international indices, which would make the local financial market of interest to foreign investors. These included the FTSE Russell emerging markets index for government bonds — FTSE Emerging Markets Government Bond Index (EMGBI). It is hoped that this accession will contribute to expanding the base of investors in the financial market, improving levels of liquidity, and attracting the liquidity of foreign investors who follow the global index of the Saudi market.