CMA: 37 IPO files under study; foreign investment rules up for review

Speaking during the Argaam Summit sessions, Alhumaid said that the Saudi market witnessed dynamic and significant growth during the recent five years, with around 368 listed companies and funds currently on the market — a number that is expected to rise.

For More IPOs

Over the past five years, the rate of IPOs is unprecedented in the history of the Saudi capital market, with 40 to 50 offerings per year, and in some years even exceeding 50. This surge positioned the Saudi market as the seventh globally in terms of capital raised from IPOs in 2024.

Alhumaid indicated that assets under management (AUM) in investment funds and managed portfolios expanded to over SAR 1 trillion from around SAR 500 billion five years ago. Also, the number of beneficiaries jumped to approximately 1.8 million clients.

This growth reflects the growing awareness among both local and foreign investors of the importance of institutional investment through investment and managed funds.

In parallel, the number of licensed financial institutions rose from 106 to 197 to date.

Alhumaid highlighted that Nomu played a significant role in boosting the number of listings and the volume of capital raised, pointing out substantial potential for further development in this field, including enhancements to listing and qualification requirements, which are planned for review during the current year.

Foreign investors have become a core player of trading activity in the Saudi market since they were first allowed to invest ten years ago. Their trading share ranges between 20% and 25%, occasionally reaching as high as 30%. Additionally, the number of qualified foreign investors advanced from 2,334 in 2020 to 4,181 currently.

He pointed out that in 2025, they are working on revising the regulatory framework for foreign investment in securities in order to ease qualification requirements and attract more foreign investors.

As part of these easing measures, GCC residents will be treated the same as Saudi residents when opening investment accounts.

Moreover, Saudi-based residents who permanently leave the country will still be able to invest in the Saudi market through specific procedures. Efforts are also underway to attract new investor segments by the end of the year.

In the coming period, the CMA will also focus on developing the debt market and the asset management industry, especially given the strong growth potential in line with the scale of the Saudi economy, Alhumaid affirmed.