Saudi Arabia: The Saudi stock market has experienced significant growth, now ranking seventh globally and showcasing the resilience of the real economy, according to Mohammed bin Abdullah El-Kuwaiz, chairman of the Capital Market Authority.

El-Kuwaiz made these remarks at the 7th CEOs Forum, organized by the Small and Medium Enterprises General Authority, known as Monsha’at, on Sept. 30 in Riyadh. The event, themed “Opportunities to Enhance Business Growth,” was attended by over 1,200 executives across various sectors and sponsored by Saudi Commerce Minister Majid Al-Qasabi, who is also chairman of Monsha’at.

The forum featured local and international speakers, experts, and entrepreneurs, all aimed at empowering high-growth enterprises with insights into the latest developments and innovative practices in the SME landscape.

In a panel discussion, El-Kuwaiz highlighted the remarkable growth of the Saudi stock market, which ranked 25th or 26th globally at the outset of Vision 2030. “Today, it stands as the seventh largest market in the world. Over the years, it has increasingly mirrored the real economy,” he stated.

He emphasized the market’s role as a key destination for entrepreneurs, attracting both local and global investors.

“We must facilitate the transition of companies into the Kingdom, enabling them to list and issue shares,” he said, noting that resolving challenges related to zakat and taxation remains a critical hurdle.

El-Kuwaiz pointed out that the primary function of the stock market for entrepreneurs is to secure financing for expansion or exit strategies, allowing investors to engage in new ventures. He identified two primary funding avenues: equity financing and debt market financing.

While acknowledging the current maturity of the stock market, he indicated that several priorities remain, particularly the introduction of a technological system for managing subscriptions. This system, recently launched by the Saudi Stock Exchange, aims to streamline subscriptions, reduce costs, and shorten processing times, enhancing the market’s attractiveness.

Discussing the debt market, El-Kuwaiz noted significant growth potential. “Recently, the authority proposed major amendments to the regulations governing the issuance and listing of securities, simplifying processes to enable more companies to participate,” he explained.

He also addressed the challenges faced by the Saudi parallel market, Nomu. “Efforts are underway in collaboration with Tadawul to enhance liquidity, increase listings, and broaden the investor base,” he said.

El-Kuwaiz acknowledged the traditional reliance of Saudi Arabia's economy on oil exports, highlighting the recent presence of Aramco and various tech companies in the stock market, creating one of the most profitable sectors. He noted that SMEs account for 55 percent of listings on the Saudi stock market, leading to the launch of Nomu in 2017, which now features over 70 companies, primarily SMEs.