The Saudi Capital Market Authority (CMA) has unveiled an ambitious three-year plan to elevate the kingdom’s capital market into a global powerhouse. The strategy focuses on developing a solid debt market, improving asset management, and attracting international investment to boost market growth and competitiveness.

A key element of the plan is the introduction of Special Purpose Acquisition Companies (SPACs) and Saudi Depositary Receipts (SDRs), designed to provide investors with more diverse opportunities. These initiatives are anticipated to attract domestic and foreign capital, enhancing the market’s appeal and depth.

CMA Chairman Mohammed El-Kuwaiz highlighted the plan’s ambitious goals, stating, “Our new strategy emphasizes the creation of a robust debt market, the enhancement of the asset management industry, and the attraction of increased investments to the national economy.”

To achieve these objectives, the CMA will roll out over 40 initiatives encompassing regulatory reforms, market development measures, and investor protection strategies. This plan aligns with Saudi Vision 2030, aiming to build a sophisticated financial ecosystem that attracts global investment.

CMA Chairman Mohammed El-Kuwaiz highlighted the strategy’s focus on developing a robust debt market, enhancing asset management, and increasing investment flows to support the national economy.

Additionally, the CMA plans to expand the sukuk and debt markets through frameworks for green, social, and sustainable instruments, reflecting global environmental, social, and governance (ESG) trends.

To support Saudi Arabia’s broader financial goals, the CMA is simplifying regulations for issuing and listing debt instruments. The aim is to increase the stock market’s value to 80.8% of GDP by 2025 and grow the debt instruments market to 24.1%.

Investor protection remains a top priority, with plans to enhance transparency, supervisory mechanisms, and class action compensation procedures. CMA Chairman Mohammed El-Kuwaiz emphasized the critical role of trust in the market, noting recent measures to increase penalties and streamline complaint resolutions between financial institutions and clients.

The strategy also targets fintech development, aiming to double the number of licensed fintech companies and promote open finance applications to boost competition and efficiency. Building on a 52% increase in listed companies since 2019, the CMA envisions establishing Saudi Arabia as a regional and global financial leader by 2026.

Now accepting applications for Fast Company Middle East’s Most Innovative Companies. Click here to apply.