Saudi authority imposes $11.4m in fines on investors for dodgy practices

CMA underscored the importance of investor confidence in fostering the growth and advancement of the financial market. It reiterated its commitment to vigilantly observe any misconduct, apprehend wrongdoers, and ensure the implementation of appropriate measures to impose penalties.
CMA underscored the importance of investor confidence in fostering the growth and advancement of the financial market. It reiterated its commitment to vigilantly observe any misconduct, apprehend wrongdoers, and ensure the implementation of appropriate measures to impose penalties.
Short Url
Updated 01 October 2024
Follow

Saudi authority imposes $11.4m in fines on investors for dodgy practices

Saudi authority imposes $11.4m in fines on investors for dodgy practices

RIYADH: Saudi Arabia’s Capital Market Authority slapped fines to the tune of SR42.9 million ($11.4 million) on 13 investors and others found in violation of the law.

A total of SR17 million fines have been imposed on 13 investors “for placing purchase orders that influenced the share price, some of which were linked to sale orders, while trading on the shares of listed companies.”

A CMA statement said: “They and other investors were obligated to pay a total of SR25.9 million for the illegal gains achieved in their investment portfolios.”

The authority clarified that the definitive decision of its Appeals Committee for the Resolution of Securities Disputes resulted from the coordination and mutual collaboration between the authority and relevant entities.

It added that the action was taken in light of the public criminal lawsuit filed by the Public Prosecution.

CMA underscored the importance of investor confidence in fostering the growth and advancement of the financial market. It reiterated its commitment to vigilantly observe any misconduct, apprehend wrongdoers, and ensure the implementation of appropriate measures to impose penalties.

Moreover, it stated that these actions are consistent with the authority’s endeavors to nurture an appealing atmosphere for investors of all types, shielded from unjust, precarious, deceitful, fraudulent, or manipulative activities.


Pakistan’s finmin calls for technical support in meeting with World Bank delegation

Pakistan’s finmin calls for technical support in meeting with World Bank delegation
Updated 19 February 2025
Follow

Pakistan’s finmin calls for technical support in meeting with World Bank delegation

Pakistan’s finmin calls for technical support in meeting with World Bank delegation
  • World Bank delegation arrived in Pakistan this week to discuss country’s economic projects and investments 
  • Muhammad Aurangzeb informs delegation of Pakistan’s economic gains and reforms agenda, says Finance Division 

KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb on Wednesday told a World Bank delegation that the country has enough financial assistance, stressing that it requires technical support and expertise to make the most of it. 
A delegation of nine executive directors of the World Bank arrived in Pakistan this week to discuss the country’s economic projects and investments, meeting Prime Minister Shehbaz Sharif on Monday.
The World Bank last month announced it would provide Pakistan with $20 billion in loans over the next decade. These loans are expected to be invested in nutrition, education and renewable energies in the hope of stimulating private-sector growth in the country. 
“We have enough financial support and assistance; what we truly need now is the expertise and technical support to make the most of them,” Aurangzeb was quoted by Pakistan’s Finance Division as saying in a statement. 
Aurangzeb appreciated the international institution’s support for Pakistan’s economic growth and development agenda. He outlined the government’s structural reforms, focusing on revenue mobilization, energy sector reforms, restructuring of state-owned enterprises and privatization efforts. 
“He emphasized the government’s focus on fiscal discipline through expenditure control and broadening the tax base, highlighting ongoing rightsizing efforts and projected revenue growth,” the Finance Division said. 
The minister reaffirmed Pakistan’s commitment to privatize loss-making public assets, saying that Islamabad was committed to ensuring a business-friendly environment where the private sector takes the lead in driving economic growth.
The Finance Division said that the delegation appreciated Pakistan’s reform agenda, noting that key economic measures were already yielding visible results. 
“Your government has been successful in touching every important aspect of the economy, and things seem to be achievable now if you stay the course,” the delegation said, as per the Finance Division.  
The World Bank officials also reaffirmed the institution’s commitment to continuing its collaboration with Pakistan, supporting priority sectors and providing the necessary technical expertise to help the country navigate economic challenges, the Finance Division said. 
Cash-strapped Pakistan has long suffered from a macroeconomic crisis, which caused it to come to the brink of a sovereign default in 2023. The International Monetary Fund (IMF) rescued Islamabad by agreeing to a last-gasp $3 billion bailout in 2023.
Last year, Islamabad secured a new $7 billion loan deal from the IMF. Since then, the country’s economy has started improving with weekly inflation coming down from 27 percent in 2023 to 1.8 percent in January year-on-year.


Saudi Arabia’s Al-Ahsa records 500% growth in local, international tourists in 2024

Saudi Arabia’s Al-Ahsa records 500% growth in local, international tourists in 2024
Updated 19 February 2025
Follow

Saudi Arabia’s Al-Ahsa records 500% growth in local, international tourists in 2024

Saudi Arabia’s Al-Ahsa records 500% growth in local, international tourists in 2024

RIYADH: Saudi Arabia’s Al-Ahsa region saw a 500 percent surge in tourists, surpassing 3.2 million in 2024 compared to 2019, the Kingdom’s tourism minister said.

In a speech at the Al-Ahsa Forum 2025, held from Feb. 19-20, Ahmed Al-Khateeb shared that total tourist spending last year surpassed SR3.3 billion ($897 million), with a growth rate estimated at about 400 percent compared to 2019, the Saudi Press Agency reported.

This falls in line with the ministry’s continued efforts to enable investment and qualify national cadres to enhance Al-Ahsa’s position as a prominent tourist destination in Saudi Arabia, the minister highlighted.

The growth also aligns with the qualitative shift in the regional hospitality sector. The number of licensed tourism facilities in the governorate grew by 52 percent compared to 2023, while the total number of licensed rooms reached 2,700 by the end of last year.

During his speech, Al-Khateeb also underlined the efforts made by the tourism sector, indicating that the Tourism Development Fund has financed several qualitative projects in the governorate, most notably the five-star “Hilton Al-Ahsa” hotel, “Radisson Blu” and “Hilton Garden Inn.”

He said the Ministry of Tourism has implemented several initiatives and various exemptions as well as incentive programs aimed at further elevating the investment environment in Al-Ahsa and that several projects have benefited from them, with a total value of SR3 billion in the governorate.

Al-Khateeb added that the ministry has provided more than 5,300 training prospects for national cadres in the governorate from 2023 until today, exceeding 50 percent of the target of training opportunities allocated by the ministry for the region, which was announced in the previous version of the forum.

He also said that the entity will continue working to qualify national cadres by providing the largest possible number of training opportunities for locals.

During a meeting with investors and entrepreneurs as part of his broader tour across Saudi regions in November, Al-Khateeb said that the Kingdom committed over SR3.5 billion to develop 17 tourism projects in Al-Ahsa, positioning the region as a key destination in the nation’s growing travel sector. 

At the time, the minister outlined plans to enhance the governorate’s tourism infrastructure while noting that the projects would add more than 1,800 hotel rooms, thereby leveraging Al-Ahsa’s natural and cultural assets to attract domestic and international visitors.


Saudi Arabia’s NDMC eyes green bond issuances in 2025

Saudi Arabia’s NDMC eyes green bond issuances in 2025
Updated 19 February 2025
Follow

Saudi Arabia’s NDMC eyes green bond issuances in 2025

Saudi Arabia’s NDMC eyes green bond issuances in 2025

RIYADH: Saudi Arabia’s National Debt Management Center is considering issuing green bonds in international markets after finalizing its green framework in 2024, a senior official said.

At the Capital Markets & the Kingdom of Saudi Arabia event, Muhannad Mufti, chief of portfolio management at NDMC, highlighted that the Kingdom has introduced key debt programs to ensure sustainable access to capital markets and strengthen the yield curve.

Mufti explained: “The NDMC launched the GMT program in 2016, which focused on international issuances. We also introduced a local sukuk program to help with price discovery and expand the yield curve, with maturities ranging from 7 to 30 years. Additionally, we launched the international sukuk program.”

He added, “In 2024, we finalized the green framework, and throughout this year, we are exploring opportunities to issue in the green market.”

Debt market evolution

Saudi Arabia's debt market has seen significant growth, with experts noting a surge in investor interest in debt instruments amid rising interest rates.

Mohammed Al-Bensaleh, head of debt financing at Al Rajhi Capital, emphasized the local debt capital market’s expansion, which has consistently outpaced the equity market in recent years.

“The local debt capital market has historically been larger than the equity market. Some corporates initially issued in the local capital market but later shifted focus to other funding sources for reasons such as process, currency requirements, cost, or flexibility,” Al-Bensaleh explained.

He pointed out that despite liquidity pressures, the loan market remains significantly larger than the capital market, creating opportunities for issuers.

“Especially in the current environment, we’re seeing more investors focusing on debt instruments as an investment avenue, which wasn’t the case just three years ago when interest rates were very low,” he added.

Mohammad Al-Faadhel, assistant deputy of financing at the Capital Market Authority, discussed the structured evolution of Saudi Arabia’s financing landscape and how the debt capital market is poised for further acceleration, especially following Vision 2030 reforms.

“I want to take a step back and look at how financing evolves. Typically, in other markets, it starts with bank loans, progresses to the equity market, then to bond markets, and eventually more complex instruments like derivatives and structured products,” Al-Faadhel said.

He highlighted the influence of Vision 2030 in transforming the Kingdom from a capital exporter to a market where credit outpaces deposits, creating an ideal environment for the debt market to grow.

“We haven’t left this to chance. Together with other stakeholders, we’ve proactively established the Sukuk and Development Capital Market Committee to remove obstacles and support the market’s growth,” he concluded.

Key challenges and future outlook

While Saudi Arabia’s debt market is rapidly maturing, several challenges remain. Al-Bensaleh highlighted three key obstacles: liquidity for government sukuk, expanding corporate debt issuances, and introducing securitization.

“To address liquidity for government sukuk, we’ve implemented several measures, including the introduction of a market-making framework by the exchange in January, the launch of the omnibus account structure in November, and the near completion of licensing an alternative trading system,” he explained.

On the corporate side, efforts are underway to simplify listing requirements and encourage broader participation.

“We’ve reduced some requirements by 50 percent without compromising investment protection. As a result, we’ve seen increased activity and expect a strong pipeline of approvals in 2025,” Al-Bensaleh added.

The push toward green and sustainable finance is another critical area, with regulatory bodies set to introduce new guidelines for green, social, and sustainability-linked bonds by the end of March.

Looking ahead, Al-Faadhel outlined the Kingdom’s ambitions for the debt market, aiming to increase the debt-to-bank loan ratio from the current 11 percent debt-to-89 percent bank loan split to the mid-20s within five years, and closer to G20 averages in the next decade.

“Currently, the split between bank loans and the debt capital market is far below G20 levels. In five years, we aim to move from 11 percent to the mid-20s, and hopefully, within 10 years, align closer with G20 averages. That’s our goal,” he concluded.

With strategic reforms, growing investor interest, and proactive regulatory bodies, Saudi Arabia’s debt market is set for substantial growth, positioning the Kingdom as a key player in regional and global capital markets.


Global energy leaders convene in Riyadh for 15th tripartite forum on energy outlooks

Global energy leaders convene in Riyadh for 15th tripartite forum on energy outlooks
Updated 19 February 2025
Follow

Global energy leaders convene in Riyadh for 15th tripartite forum on energy outlooks

Global energy leaders convene in Riyadh for 15th tripartite forum on energy outlooks

RIYADH: Dialogue and collaboration are essential for sustainable market stability, benefiting consumers and producers and supporting the global economy, according to OPEC’s secretary general.

These remarks were made during the 15th International Energy Agency-International Energy Forum-OPEC Symposium on Energy Outlooks, held on Feb. 19 at the King Abdullah Petroleum Studies and Research Center in Riyadh, where global leaders, policymakers, and industry experts gathered to discuss critical developments in the sector.

Held under the patronage of Saudi Arabia’s Minister of Energy, Abdulaziz bin Salman, the annual symposium has established itself as a key platform for fostering producer-consumer dialogue.

Haitham Al-Ghais, secretary general of OPEC, expressed his gratitude to the Kingdom’s energy minister for his continued support, emphasizing the importance of global energy cooperation. 

The symposium featured in-depth discussions on pressing energy challenges, including shifting geopolitical and economic dynamics, market volatility, and the widening gap between varying energy outlooks. 

Experts from leading organizations examined the findings of the IEA, OPEC, and EIA energy outlook reports, analyzing their implications for energy security, market stability, and sustainability. 

A key focus of the discussions was the medium-term impact of the energy transition, with panelists assessing the opportunities and risks associated with shifting global energy consumption patterns, the integration of renewables, and the increasing demand for critical raw materials.  

The event also addressed long-term energy perspectives, exploring how producers and consumers can balance technological advancements with their shared dependencies. 

Industry leaders debated strategies for scaling carbon abatement solutions and advancing clean initiatives while maintaining energy security and economic stability. 

The discussions underscored the importance of continued investment in traditional and emerging energy sources to ensure an orderly and equitable transition.  

As part of a broader collaboration initiated under the Cancun Declaration of 2010, the symposium serves as a critical forum for aligning international strategies. 

This year’s event builds on a tradition of collaboration among the three organizations established under the 2010 Cancun Declaration. It aims to address key energy challenges, foster producer-consumer dialogue, and support global energy stability. 

The event follows the success of the 14th edition, which took place in Riyadh on Feb. 21, 2024, and focused on the importance of dialogue amid market volatility.


Saudi CMA to boost market growth with SPACs, enhanced direct listings

Saudi CMA to boost market growth with SPACs, enhanced direct listings
Updated 19 February 2025
Follow

Saudi CMA to boost market growth with SPACs, enhanced direct listings

Saudi CMA to boost market growth with SPACs, enhanced direct listings

RIYADH: Saudi Arabia’s Capital Market Authority is working on the introduction of special-purpose acquisition companies in the capital market to streamline the listing process, according to a senior CMA executive.

The authority is also aiming to improve the framework for direct listings, which may include offerings on the main market, and plans to expand the investor base in the parallel market to boost supply, according to Fahad bin Hamdan, assistant deputy for financing and investment at the CMA.

In his remarks at a conference organized as part of the Capital Markets Forum in Riyadh, he emphasized that SPACs would offer companies an alternative path to going public, simplifying the traditional listing process and encouraging more market participation.

“One of the key initiatives the CMA is focusing on is the introduction of SPACs in the capital market, which will simplify the stock listing process. Additionally, we are enhancing the direct listing framework, potentially including direct listings in the main market,” said Hamdan.

He continued: “We also aim to expand the investor base in Nomu to increase supply. In collaboration with  Zakat, Tax, and Customs Authority, we are working to eliminate the withholding tax on all listed securities, a move that will help attract more foreign investment into the market.”

Streamlining IPO process

Hamdan also mentioned that the CMA may refine its initial public offering process to support Tadawul in making issuances and listings more accessible and appealing across various industries.

This initiative has already led to a 70 percent increase in listed stocks over the past four years, bringing the total to nearly 350 across both the main market and Nomu.

“If we look back four years, we had only five securities or stocks. Today, we have nearly 106 stocks, which reflects how much the market has grown and become more diverse, attracting investors from various sectors,” Hamdan explained.

He highlighted ongoing efforts in the debt market, noting that it has become a significant financing channel for both the public and private sectors.

The CMA has collaborated with key stakeholders, including the Saudi Central Bank, the National Debt Management Center, and Tadawul, to implement initiatives aimed at deepening the market.

Among the key actions taken, the CMA has simplified the offering documents for public debt issuances, allowed direct listing of privately placed debt instruments, and opened the debt market to international depository centers.

Foreign investor engagement has also broadened, attracting a diverse range of participants. To further encourage secondary market activity, the CMA eliminated commission fees on bond transactions, lowering costs and attracting more investors and issuers.

Debt issuances

In addition, the authority is working with ZATCA to introduce sukuk structures with zero tax burdens, removing a significant obstacle for local investors in a low-interest environment.

These reforms have had a notable impact, with the number of debt issuances doubling over the past three years, rising from 30 to 60.

According to Hamdan, the investor base in the debt market has expanded from 500 to over 50,000 participants. The number of transactions in the sukuk and debt market also surged by 893 percent from 2021 to 2023, reflecting the broader engagement from both issuers and investors.

“These amendments also helped reduce the concentration of banks’ ownership of debt instruments. Previously, banks held around 60 percent of total debt,” the official said.

He added: “Now, that figure has dropped to below 45 percent as investment companies, mutual funds, and retail investors have increased their participation.”

The CMA remains dedicated to further deepening the market in collaboration with its partners. In recent years, it has worked with Tadawul to introduce a market-making framework, initially applied to select stocks, aimed at enhancing liquidity and narrowing bid-ask spreads.

This framework is continually evolving to cover a broader range of asset classes, ultimately improving overall market efficiency.

Exchange-traded funds

The Saudi Exchange-Traded Funds market has also experienced substantial growth. Since its launch in 2010 with three ETFs focused on local equities, the sector has expanded to include sukuk ETFs for fixed-income exposure and gold ETFs.

In 2022, there were eight ETFs with a total of SR1.5 billion in assets under management. By 2023, this number had increased to 11 ETFs, with AUM rising to SR6.5 billion.

“Yet, we believe the ETF sector still has room for development and can play a bigger role in market transformation,” Hamdan said.

He continued: “This year, the CMA will conduct a full analysis of the ETF ecosystem to explore new strategies, such as active ETFs, and improve the efficiency of basket creation and liquidity enhancement mechanisms.”

The CMA is also focused on enhancing data dissemination and introducing measures such as short selling and securities lending for ETFs, which will make the market more attractive to both local and international investors.

Hamdan highlighted the growing interest from foreign investors, noting that several ETFs listed in other markets are now investing in Saudi equities.

Foreign investment

The CMA has made significant strides in opening the Kingdom’s market to foreign investors, a process that began two decades ago with the introduction of direct access for foreign residents. In 2015, the Qualified Foreign Investor regime was launched, marking a key milestone in the liberalization of Saudi markets. Since then, ongoing regulatory changes have further eased foreign access and reduced restrictions.

“These efforts have led to a fivefold increase in the number of QFIs over the past four years. By the end of 2023, QFI ownership in the Saudi market had surged to SR422 billion, a remarkable 2,000 percent increase over the past four years,” Hamdan said.

With these continued regulatory advancements, Saudi Arabia’s capital market is set for further growth, diversification, and deeper global integration, all in line with the Kingdom’s Vision 2030 objectives.