Saudi Arabia’s stock market has emerged as the fastest-growing in the world in 2024, with over 55 initial public offerings (IPOs) across various sectors. This surge has created diverse investment opportunities for both local and international investors, supported by major banks facilitating IPO participation. Additionally, more than 15 new listings are awaiting regulatory approval.
These developments were highlighted at the Financial Markets Forum 2025, which began in Riyadh under the theme “Empowering the Future of Financial Markets.” The three-day event, running until February 20, brings together top financial leaders and decision-makers to discuss the future of global financial markets.
Saudi Investment Minister Khalid Al-Falih said the Kingdom’s debt market remains underdeveloped compared to its potential, accounting for less than 4% of GDP—significantly below the G20 average of 40%. He encouraged Saudi companies to explore raising capital through bond and sukuk issuances.
Saudi Arabia’s next challenge is upgrading from emerging to advanced market status, he revealed. The Kingdom has already demonstrated its ability to adapt by successfully joining major emerging market indices such as MSCI and FTSE within two years of the Vision 2030 launch.
Green investment
Al-Falih highlighted a growing interest from Asian investors in the Saudi market, attributing this to major investments in tourism, transportation, and logistics, which have strengthened the financial sector.
Regarding green investment, he said Saudi Arabia has made sustainability a key priority, moving from an oil-dependent economy to a diversified one. He cited the success of the LEAP Conference as evidence of Saudi Arabia’s rising global investment influence.
He also discussed the insurance sector, which currently contributes about 2% of GDP, with a target to increase this to 8%. He pointed out significant growth opportunities in specialized insurance fields, including property and life insurance.
Al-Falih noted that several sectors, which were almost nonexistent before Saudi Vision 2030, have since experienced substantial growth, with some achieving double-digit annual increases despite global economic challenges, including the COVID-19 pandemic.
UK-Saudi trade relations
UK Investment Minister Baroness Poppy Gustafsson reaffirmed Britain’s commitment to expanding trade with Saudi Arabia. She highlighted efforts to increase direct flights and facilitate electronic visa applications to strengthen economic ties.
Speaking at a panel discussion, she emphasized the UK-Saudi strategic partnership, stating that the upcoming free trade agreement between the UK and the Gulf Cooperation Council (GCC) could boost trade by 18%. She also stressed the importance of fostering business relationships through joint events to drive economic cooperation.
Regarding renewable energy, the minister praised Vision 2030 as a global model for sustainability and environmental responsibility.
Moreover, she underscored the UK’s strengths as an investment hub, citing its modern industrial strategy, robust financial infrastructure, and world-class academic institutions as key factors attracting investors.
Saudi stock market
Sarah Al-Suhaimi, Chairperson the Board of Directors of Saudi Tadawul Group, described the forum as a key platform for discussing the resilience of financial markets amid evolving economic conditions and identifying emerging opportunities.
Meanwhile, Tadawul CEO Mohammed Al-Rumaih noted that Saudi Arabia’s stock market recorded more than 55 IPOs in 2024, with exceptionally high subscription rates—exceeding 1,000% in the main market and 400% in the parallel market (Nomu).
Saudi Arabia had the highest number of company listings worldwide in 2024, marking a significant milestone, he stated.
“We celebrated the listing of 400 financial instruments and launched a new capital system—one of our most innovative developments,” he added.
With 15 banks now active in the Saudi stock market, IPO subscriptions have surged, with Nomu witnessing a 50% increase.
The forum featured panel discussions on global economic trends, regional market shifts, capital allocation strategies, and investment opportunities amid economic transformations.
Topics included the role of commodities in driving economic growth in the Gulf Cooperation Council, strategies for financing renewable energy projects, and infrastructure investments to support Saudi Arabia’s sustainability goals.
