Asharq Al-awsat English Middle-east and International News and Opinion from Asharq Al-awsat Newspaper

Individual Investors Doubled in Saudi Financial Markets

Individual Investors Doubled in Saudi Financial Markets

Tuesday, 26 April, 2022 - 08:00
An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul). (Reuters)

Recent official data revealed that over 4.7 million subscribers per capita are active in the proposals of financial markets in Saudi Arabia, according to the 2021 annual report of the Saudi Capital Market Authority (CMA).

The annual report stated that the number of individual investors in IPOs jumped 4.7 times, from 815,000 investors in 2020.

The Saudi economy recovered from the repercussions of the coronavirus pandemic and its severe impact on the global economy.

The Saudi activities and sectors, namely the financial markets, recovered rapidly due to the government decisions that included many programs, initiatives, and recovery packages.

E-channels ranked first with about 2.3 million subscriptions, followed by branches of banks that received 1.2 million subscribers, ATMs were third with 598,000 subscribers, and phone banking recorded 508,000 investors.

The CMA revealed that the volume of initial public offerings in the main and parallel financial markets tripled last year, bringing the value of listings to $8.2 billion before the surplus.

The number of IPOs requests and shares’ registration in the main and parallel markets increased 385.8 percent compared to the previous year to reach 34 applications.

About 41.2 percent of the total requests for initial public offerings were in the main market, Tadawul.

The report disclosed that total revenues rose 6.2 percent to $440 million in 2021, compared to $4 million in 2020.

According to the report, revenues from trading services and the Authority’s activities grew by about 10 percent to $35 million, compared to $32 million in 2020.

The CMA Board and the Committees for Resolution of Securities Disputes issued 106 penalties against 357 violations of the rules and regulations in 2021.

The CMA pointed out that 260 penalties have been implemented against various violators, representing 73 percent of the total, while the rest is currently being followed up.

The annual report showed an increase in total expenditures by about six percent during 2021 to $207 million, compared to $195 million in 2020.

Public and administrative expenses fell to $41 million in 2021, compared to $48 million the previous year, a 13.8 percent decline.

The report also noted that benefits and salaries increased 10.3 percent to reach $141 million in 2021, compared to $128 million in 2020.

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