Saudi Non-Listed Corporate Debt Jumps Over 500% as Investors Diversify
Riyadh: The Saudi debt market surged during the second quarter of the year, driven by a massive increase in non-listed corporate debt.
Saudi Arabia's debt instruments market saw significant growth in the second quarter of the year, primarily due to the substantial rise in non-listed corporate debt.
According to the Capital Market Authority's quarterly statistical bulletin, this segment jumped 513.8 percent year on year to SR1.20 billion from approximately SR200 million.
In comparison, traded government debt instruments experienced a growth of 132.4 percent, rising to SR15.60 billion compared to SR6.72 billion in the same period of 2024.
The increased activity can be attributed to efforts by the CMA to introduce new investment products and structural reforms aimed at diversifying investor portfolios beyond equities.
The regulator also proposed a framework for special purpose acquisition companies on the Nomu Parallel Market, aiming to facilitate private-sector listings and expand the range of available investment vehicles.
This move is part of a broader strategy to encourage investors to diversify their investments in an effort to maximize returns and reduce risks.
Individual investment portfolios in the main market saw an increase of 11.95 percent, reaching 13.91 million, while the number of individual investors holding these portfolios rose by 6.7 percent to 6.90 million.
Managed portfolios experienced a notable growth of 29.5 percent, amounting to 103,630 units, with total assets increasing by 9 percent to SR352.60 billion.
The expansion of the individual investor base and their growing engagement with diverse investment instruments in the capital market are reflected in these figures.
Foreign investment in the Saudi financial market also experienced a growth of 1.65 percent year on year, reaching SR481.8 billion.
This increase can be attributed to factors such as the recent rise in the US market, where the S&P 500 index surged by more than 10 percent in the second quarter.
The investment funds sector posted strong gains as well, with the number of funds rising 24.8 percent to 1,735 and total assets increasing 27.8 percent to SR781.41 billion.
Subscribers also saw a significant increase of 30.16 percent, reaching over 1.76 million, while real estate funds accounted for 31.6 percent of public subscribers and 71 percent of private subscribers.
Listed corporate debt instruments experienced a growth of 13.3 percent in traded value, reaching SR426 million.
New non-listed corporate debt issuances saw an impressive increase of 94.37 percent to SR3.01 billion, while outstanding issuances rose by 16.2 percent to SR124.87 billion.
The CMA attributes these positive results to the strength of the Saudi capital market and its investment appeal, emphasizing the ongoing efforts to develop the regulatory framework in line with international best practices.
This continued enhancement aims to attract both domestic and foreign investors and supports the diversification of investment instruments in alignment with economic growth targets outlined in Saudi Vision 2030.
According to the Capital Market Authority's quarterly statistical bulletin, this segment jumped 513.8 percent year on year to SR1.20 billion from approximately SR200 million.
In comparison, traded government debt instruments experienced a growth of 132.4 percent, rising to SR15.60 billion compared to SR6.72 billion in the same period of 2024.
The increased activity can be attributed to efforts by the CMA to introduce new investment products and structural reforms aimed at diversifying investor portfolios beyond equities.
The regulator also proposed a framework for special purpose acquisition companies on the Nomu Parallel Market, aiming to facilitate private-sector listings and expand the range of available investment vehicles.
This move is part of a broader strategy to encourage investors to diversify their investments in an effort to maximize returns and reduce risks.
Individual investment portfolios in the main market saw an increase of 11.95 percent, reaching 13.91 million, while the number of individual investors holding these portfolios rose by 6.7 percent to 6.90 million.
Managed portfolios experienced a notable growth of 29.5 percent, amounting to 103,630 units, with total assets increasing by 9 percent to SR352.60 billion.
The expansion of the individual investor base and their growing engagement with diverse investment instruments in the capital market are reflected in these figures.
Foreign investment in the Saudi financial market also experienced a growth of 1.65 percent year on year, reaching SR481.8 billion.
This increase can be attributed to factors such as the recent rise in the US market, where the S&P 500 index surged by more than 10 percent in the second quarter.
The investment funds sector posted strong gains as well, with the number of funds rising 24.8 percent to 1,735 and total assets increasing 27.8 percent to SR781.41 billion.
Subscribers also saw a significant increase of 30.16 percent, reaching over 1.76 million, while real estate funds accounted for 31.6 percent of public subscribers and 71 percent of private subscribers.
Listed corporate debt instruments experienced a growth of 13.3 percent in traded value, reaching SR426 million.
New non-listed corporate debt issuances saw an impressive increase of 94.37 percent to SR3.01 billion, while outstanding issuances rose by 16.2 percent to SR124.87 billion.
The CMA attributes these positive results to the strength of the Saudi capital market and its investment appeal, emphasizing the ongoing efforts to develop the regulatory framework in line with international best practices.
This continued enhancement aims to attract both domestic and foreign investors and supports the diversification of investment instruments in alignment with economic growth targets outlined in Saudi Vision 2030.
