CMA Reports Significant Growth As Assets Under Management Surpass SAR 1 Trillion In Saudi Capital Market

The Capital Market Authority (CMA) reported that assets under management in Saudi Arabia's capital market surpassed SAR1 trillion by the end of 2024. This marked a 20.9% increase from the previous year. The number of investment funds reached 1,549, and subscribers in public and private funds grew to over 1.72 million, a 47% rise compared to 2023.

Saudi Arabia's capital market saw notable growth in foreign investments, with net foreign investments reaching SAR218 billion by the end of 2024. This was a 10.1% increase from SAR198 billion in the previous year. Foreign ownership value also rose to SAR423 billion, accounting for 11% of total free float shares in the Main Market.

The CMA approved several regulatory changes in 2024, including Instructions on Offering Real Estate Contributions Certificates. Amendments were made to regulations such as the Capital Market Institutions Regulations and Investment Account Instructions. These efforts aimed at enhancing market stability and expanding investor categories.

In terms of sukuk and debt instruments, their total value listed in the Saudi capital market reached SAR663.5 billion by the end of 2024. This reflected a growth rate of 20.6% from SAR549.8 billion at the end of 2023. The CMA's focus on developing this market segment included easing regulatory requirements.

The year witnessed an increase in public offerings and equity registrations, with the CMA approving 60 applications—a rise of 36.4% compared to 2023. Of these, 40 applications were for the Parallel Market and 16 for the Main Market, resulting in a total of 44 listings completed across both markets.

Regarding capital market institutions, their number rose to 186 by the end of 2024. Revenues increased by 29.6%, reaching SAR17 billion, while profits grew by 39.3%, totalling SAR8.8 billion. These figures highlight significant financial growth within these institutions over the past year.

Investor Protection and Strategic Plans

The CMA continued its efforts to protect investors, handling 121 cases in 2024 with compensation exceeding SAR389 million distributed among beneficiaries. The average litigation period decreased to 4.4 months from 5.5 months in the previous year, reflecting improved efficiency.

CMA Chairman Mohammed bin Abdullah Elkuwaiz highlighted that their strategic plan for 2024–2026 aligns with economic developments and includes nine objectives across three pillars: financing and investment activation, ecosystem empowerment, and investor rights protection.

Elkuwaiz stated that these achievements contribute to enhancing Saudi Arabia's regional and global standing in capital markets while supporting Saudi Vision 2030 goals through sustainable growth initiatives.

With inputs from SPA