Saudi Debt Market Value Soars To SAR800 Billion, Reveals CMA Chairman

The Debt Markets and Derivatives Forum 2024 (DMDF 2024) began today in Riyadh, inaugurated by Mohammed Al-Quwaiz, Chairman of the Capital Market Authority (CMA) and Chairman of the Financial Academy's Board of Trustees. In his opening speech, Al-Quwaiz highlighted the remarkable growth of Saudi Arabia's debt market, which has doubled to SAR800 billion since 2019. Despite this growth, the debt market still represents less than 20% of the Saudi economy, indicating substantial potential for further expansion.

Al-Quwaiz noted that Saudi banks had historically dominated the debt market. However, in recent years, a broader range of investors, including funds, insurance companies, and other specialized entities, have entered the market. He emphasized that the next phase in the debt market's development would focus on encouraging greater foreign investment by joining more global indices and expanding the market's scope beyond regulatory changes.

The current favorable conditions in Saudi Arabia’s debt market make it an attractive option for foreign investors, particularly compared to the stock market. Al-Quwaiz concluded his address by commending the Financial Academy's contributions to the sector, mainly through its training initiatives. In 2024 alone, the academy has trained more than 400 professionals in the debt market and continues to provide development programs for industry workers.

Executive Director of the Financial Academy Mana Al-Khamsan welcomed participants to DMDF 2024. He positioned the event as a key platform for financial market experts and decision-makers. Al-Khamsan explained that this year's forum focuses on two main themes: exploring opportunities in bond and Sukuk markets and examining financial derivatives.

This year's event stands out for its extensive partnerships with leading entities such as the Saudi Tadawul Group, Chicago Stock Exchange, and International Capital Market Association (ICMA). These collaborations provide a foundation for in-depth discussions on futures markets and related topics. The forum emphasizes long-term strategies to support Saudi Arabia's financial sector in alignment with Vision 2030.

New Professional Certification

Al-Khamsan also announced a new professional certificate titled "Introduction to the Saudi Financial Market," launched in partnership with ICMA. This certification aims to enhance participants' understanding of Saudi financial markets, helping them deepen their knowledge and prepare for future developments. The forum provides value to specialists by offering tailored solutions to address evolving needs within the sector.

The growing importance of debt and derivatives markets is particularly noteworthy as these sectors have undergone significant regulatory and legal reforms recently. Sessions at DMDF 2024 focus on exploring financial markets' dynamics informed by expert insights into current trends and future needs.

Global Collaboration

The participation of international players such as Chicago Stock Exchange reflects DMDF 2024's global outlook. The collaboration between local, regional, and international entities underscores Saudi Arabia's commitment to developing a diversified and innovative financial sector. The forum blends global expertise with localized knowledge to facilitate efficient programs meeting financial market demands.

Al-Khamsan reiterated that the Financial Academy will continue supporting sector growth through education, training, and certification programs. These initiatives will empower professionals in Saudi Arabia and help position the nation as a leader in financial services innovation globally.

The event represents a pivotal moment for Saudi financial markets by fostering performance improvements, increasing financial awareness, and promoting innovation in financial services. It serves as a venue to highlight financial requirements of markets and anticipate future directions.

With inputs from SPA