Tadawul achieves balance between individuals, institutions; volatility ‘down significantly’: Elkuwaiz

CMA Chairman Mohammed Elkuwaiz, speaking at the Money 20/20 Middle East Conference

Mohammed Elkuwaiz, Chairman of the Capital Market Authority (CMA), said the Saudi capital market has transformed from being retail-focused and is now balanced between individuals and institutions.

Speaking at the Money 20/20 Middle East Conference, Elkuwaiz indicated that retail investors in the Saudi Exchange (Tadawul) used to account for 80-90% of the total trading value before Vision 2030.

“While this had its positives, such as high liquidity and huge trading volumes, it also had drawbacks, including susceptibility to rumors, herd behavior, and the like,” he said.

The solution lies in creating balance through diversity, said the Chairman, noting that the variety of perspectives among investors, both individual and institutional, domestic and foreign, as well as fundamental and technical ones, is what fosters this equilibrium.

He pointed out that, although Tadawul has declined by about 10% year-to-date, volatility has decreased “significantly” over the past eight years, thanks to the growing diversity of investor perspectives.