The Saudi capital market is poised for significant growth, with at least 40 new initial public offering applications currently under review, according to Mohammed Al-Rumaih, CEO of the Saudi Exchange (Tadawul). Speaking at the FII Priority Asia summit, Al-Rumaih highlighted the robust activity in the market, which has already seen over 40 companies list since the beginning of the year.
This influx of new listings underscores the increasing momentum within the Kingdom’s economy as it continues to diversify under the Vision 2030 framework.
A Growing IPO Pipeline
The current pipeline of 40 potential listings may be just the beginning. Al-Rumaih noted that if companies currently engaging with financial advisers and lead managers proceed with their applications, the number of prospective IPOs could surge to between 80 and 100.
This strong interest from private companies to go public signals growing confidence in the Saudi market’s depth and maturity.
Vision for a Regional Hub
Saudi Arabia’s ambitions extend beyond its borders. According to Al-Rumaih, the next strategic phase for the exchange is to position the Kingdom as a premier center for regional and even global IPOs, particularly within strategic sectors.
He confirmed that Tadawul has already initiated the development of pathways and infrastructure required to achieve this ambitious goal, aiming to attract international companies to list in Riyadh.
Attracting Foreign Investment
A key component of this strategy involves enhancing market accessibility and competitiveness. Al-Rumaih stated that Saudi Arabia is actively working to ease restrictions on foreign investors, aiming to increase their ownership levels in listed companies and align the market with global standards.
These efforts are supported by the Capital Market Authority (CMA), which recently sought industry feedback on proposals to establish simplified investment funds and lower entry barriers for foreign capital. These regulatory reforms are part of the broader Financial Sector Development Program under Vision 2030, which targets increasing the stock market’s size to 88 percent of GDP by the end of the decade.
About The Saudi Exchange
The Saudi Exchange (Tadawul) is the authorized entity in the Kingdom of Saudi Arabia to act as the nation’s securities exchange. It plays a crucial role in the Kingdom’s economy by enabling listing and trading in securities, providing a platform for companies to raise capital, and offering diverse investment opportunities for local and international investors.
Source: AGBI
