Saudi Tadawul eyes strong growth amid rising listings and foreign investment
Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors
It is also expanding its footprint in data innovation and commodity markets
Updated 36 sec ago
NADIN HASSAN
RIYADH: Saudi stock exchange operator Tadawul Group is poised to accelerate the growth of its fixed-income market in 2025, with a strong focus on sustainable finance, following a record year for the group.
Speaking at the 5th Capital Markets Forum in Riyadh, Tadawul chairperson Sarah Al-Suhaimi highlighted 2024 as a transformative year for the exchange, with more than 50 listings across its main and parallel Nomu markets, reflecting a surge in market activity.
Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors, which now number nearly 4,200 and represent 25 percent of total equity capital market trades. This influx aligns with Saudi Arabia’s broader economic goals of diversifying its financial sector and attracting international capital.
“A strong capital market extends beyond equities,” Al-Suhaimi said. “We are making significant strides in our diversification strategy. With over 45,000 investors, our fixed-income market is poised to gain further momentum in 2025, especially in sustainable finance.”
Looking ahead, Al-Suhaimi forecasted continued momentum across multiple asset classes in 2025. “2024 was a milestone year for the group and its subsidiaries,” she said. “We saw greater interest from international investors than ever before, with nearly 4,200 QFIs, who account for 25 percent of our total ECM trades, and a more diverse range of sectors.”
Tadawul is also expanding its footprint in data innovation and commodity markets. Through its acquisition of Direct FN and a stake in the Gulf Mercantile Exchange, the group aims to broaden its market offerings and enhance its competitive edge.
“These strategic steps align with our diversification strategy, broadening opportunities and reinforcing our position across multiple financial segments,” Al-Suhaimi said.
The CMF, as the world’s largest capital market event, continues to serve as a premier platform where Saudi Arabia’s rapidly evolving capital market intersects with global finance.
Al-Suhaimi expressed confidence that the forum will spur new partnerships and innovations, paving the way for further collaboration and growth within the Kingdom’s financial ecosystem.
“CMF is an opportunity to forge meaningful partnerships and spotlight potential venues through which we can leverage synergies for a long-lasting impact,” she said.
With an eye on 2025, Tadawul is positioned to play a pivotal role in shaping the future of the Middle East’s capital markets.
Saudi Arabia’s refinery output hits 2.54m bpd in December, marking 5% annual growth
Updated 8 sec ago
Dayan Abou Tine
RIYADH: Saudi Arabia’s refinery output climbed to 2.54 million barrels per day in December, reflecting a 5 percent year-on-year increase, according to the latest data from the Joint Organizations Data Initiative.
Fuel oil, which accounted for 18.2 percent of total refinery output, rose 7 percent over the year to 464,000 bpd. Meanwhile, gas diesel — the largest component of the refinery mix at 40 percent — declined by 5 percent.
Motor and aviation fuel production, which represented 24.7 percent of total output, recorded a 5 percent increase during the same period.
At the same time, refined crude exports saw a slight 1 percent drop, falling to 1.13 million bpd in December. Diesel remained the primary refined product export, making up 36 percent of total shipments, while motor and aviation gasoline contributed 20 percent, and fuel oil accounted for 15 percent.
The report also revealed that the Kingdom’s crude oil production stood at 8.91 million bpd in December, marking a 0.44 percent annual decline. Meanwhile, crude exports fell by 2.57 percent to 6.15 million bpd.
Domestic demand for refinery products also recorded a slight dip, decreasing by 26,000 bpd year on year to 2.29 million bpd.
OPEC+ countries, which include the 13 members of the Organization of the Petroleum Exporting Countries and non-OPEC producers like Russia, have been coordinating output cuts to stabilize the global oil market and address fluctuations in oil prices.
The most recent OPEC+ decision in December was to delay increasing oil output by three months, pushing the start of monthly production hikes to April.
This decision, which extended the full unwinding of cuts until the end of 2026, was made in response to continued weak demand and high levels of production outside the group.
As a result, OPEC+ plans to increase output gradually starting in April, while maintaining the flexibility to adjust these plans if market conditions change dramatically. The group’s broader strategy remains focused on long-term market stability and achieving a balanced supply-demand scenario that supports fair oil prices.
Moving forward, OPEC+ has continued to emphasize its commitment to energy cooperation with other regions and its role in ensuring market stability. However, the exact pace of future output increases and cuts will depend on both the global economic situation and developments in oil demand, including the transition toward renewable energy sources and geopolitical considerations.
Direct crude usage
Saudi Arabia’s direct crude oil burn — the use of crude oil in power generation — declined by 24,000 bpd in December, falling to 279,000 bpd, an 8 percent year-on-year drop and a notable 27 percent decrease from November.
The monthly decline in direct crude burn in the Kingdom can be attributed to colder weather conditions, which typically reduce the demand for energy-intensive heating during the colder months.
On a yearly basis, the decline can likely be linked to the more efficient use of energy across various sectors. This aligns with the Kingdom’s ongoing efforts to enhance energy efficiency, as highlighted during the February Egypt Energy Show in Cairo.
During the event, Saudi Energy Minister Prince Abdulaziz bin Salman reaffirmed the nation’s commitment to energy cooperation with Egypt.
As part of the partnership, Saudi firms will develop five solar and wind projects in Egypt, with a total capacity of 1.696 gigawatts and an investment of SR6.2 billion ($1.65 billion).
Additionally, ACWA Power signed a deal for a 2GW wind project in South Hurghada, valued at SR8.6 billion, making it Egypt’s largest wind energy initiative.
The Saudi-Egypt Electricity Interconnection Project, an SR6.7 billion investment enabling 3,000 MW of electricity exchange, was also highlighted as a key step in regional energy cooperation.
These projects, alongside regulatory development and capacity-building initiatives, contribute to the Kingdom’s broader efforts to promote a more sustainable and efficient energy model.
Saudi Capital Market Forum expands globally with events in Hong Kong and New York
Updated 17 min 57 sec ago
Miguel Hadchity
RIYADH: The Capital Market Forum is expanding its global footprint with two events scheduled in Hong Kong in May and New York in October, marking a step forward in Saudi Arabia’s financial sector growth.
The new events were announced by the CEO of the Saudi Tadawul Group at its latest edition, which is running from Feb. 18 to 20 in Riyadh and serves as a platform for fostering international investment and regulatory collaboration.
In a panel discussion titled “Global Capital Markets: Enhancing Resilience and Connectivity,” Khalid Al-Hussan emphasized the conference’s role in strengthening the Kingdom’s position as a global financial hub.
“Our market has evolved significantly. Previously, we had a single equity market accessible only to locals and residents. Today, we have two equity markets open to local, regional, and foreign investors,” Al-Hussan said, adding that foreign investment participation in the equity market has reached nearly $100 billion.
“Any investor can access any market. Any issuer can access any market. So, we need to build all the necessary components around the stock exchange to compete effectively,” he added.
Bonnie Y Chan, CEO of Hong Kong Exchanges and Clearing Limited, echoed the sentiment, emphasizing the need for a compelling value proposition for both issuers and investors. “We want to ensure we offer a full suite of products,” she said, acknowledging 2025 as a year of continued uncertainty despite a positive start.
Roland Chai, president of European Market Services at Nasdaq, said: “When regulation works, it protects investors, ensures seamless markets, and upholds reliability and integrity. As technology evolves, we must align regulations with market development to maintain efficiency.”
CEO of the World Federation of Exchanges, Nandini Sukumar, praised Saudi Arabia’s market transformation, describing its development in the last five years as astonishing, striking, and visible.
Al-Hussan also outlined Saudi Tadawul Group’s strategic investments in financial infrastructure, particularly in data services. “We have heavily invested in data infrastructure, and our first cloud-based product is set to launch in April,” he revealed, emphasizing the importance of trading, clearing, and settlement solutions in capital market infrastructure.
With CMF facilitating over 600 scheduled meetings between investors and issuers globally, the forum is set to bolster international collaboration and solidify the Kingdom’s position as a key player in the financial sector.
The start of day one of the CMF highlighted key global economic trends for 2025, with experts emphasizing steady growth despite market volatility, with a focus on international resilience, inflation normalization, and market performance.
Riyadh, Seoul strengthen defense ties with quality assurance deal
Updated 19 min 54 sec ago
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia and South Korea have signed a government quality assurance agreement to strengthen defense cooperation and boost their military capabilities and long-term industrial development.
The deal, signed on Feb. 18 during the International Defense Exhibition and Conference in Abu Dhabi, underscores growing ties between the two nations in defense and technology.
Saudi Arabia’s General Authority for Military Industries signed the deal with South Korea’s Defense Acquisition Program Administration in the presence of GAMI Gov. Ahmad bin Abdulaziz Al-Ohali and Korea’s Defense Minister Seok Jong-gun.
The deal is part of an ongoing effort by both nations to bolster their respective defense industries, with an emphasis on mutual national interests. It also signals a commitment to expanding cooperation in the field of defense products and services, including the exchange of best practices and expertise.
In a post on his X account, Al-Ohali said: “Today, as part of the Saudi pavilion’s participation in the International Defense Exhibition and Conference, I met with His Excellency the Minister of Defense Acquisition Program Administration of Korea, Seok Jong-gun, where we signed a cooperation agreement in the field of government quality assurance stemming from the basic agreement signed with the Korean side in 2019.”
Saudi Crown Prince Mohammed bin Salman’s 2019 visit to South Korea led to the signing of an MoU aimed at strengthening defense and industrial partnerships, focusing on military acquisitions, research, and technology.
Since then, defense ties between Saudi Arabia and South Korea have grown through several agreements.
In February 2024, their defense ministers discussed closer collaboration, and at the World Defense Show, they signed an MoU to establish a joint committee for weapons research and development.
This was followed by a $3.2 billion deal in September, with South Korea’s LIG Nex1 agreeing to supply Saudi Arabia with mid-range surface-to-air missile systems.
On the sidelines of IDEX 2025, Al-Ohali also visited the Turkish pavilion, where he met with Haluk Gorgun, president of Turkiye’s defense industry agency. “We discussed the most important developments in cooperation and joint programs between the two countries in the military industries sector.” Al-Ohali said in another X post.
The Saudi pavilion at IDEX 2025 highlights the Kingdom’s growing defense capabilities, showcasing locally developed technologies and emphasizing investment opportunities in the military, defense, and security sectors.
The pavilion underscores Saudi Arabia’s commitment to sustainability and advancing military technologies, while also showcasing the role of qualified national experts in the defense sector.
Saudi non-oil growth to remain resilient despite global economic uncertainty, experts say
Updated 51 min 43 sec ago
Nour El-Shaeri
RIYADH: High interest rates, inflation concerns, and currency volatility are unlikely to disrupt Saudi Arabia’s non-oil economic growth, according to market experts citing resilience and structural reforms as key stabilizers.
Despite global economic uncertainty, the Kingdom’s private sector continues to expand, supported by steady investment flows and a diversified capital market.
During a panel discussion at the Capital Markets Forum in Riyadh, the co-Head of the Equity Capital Markets Origination team for the Europe, Middle East, and Africa region at Morgan Stanley, Natasha Sanders, emphasized the Kingdom’s economic stability, particularly outside of oil and commodities.
“We actually see (Saudi Arabia’s) economy being very resilient. And if you look at non-oil and non-commodities sectors, the growth has been very steady and actually very consistent, so we don’t see as much volatility,” she said.
She also highlighted that global monetary policy shifts, particularly in the US, could influence markets but are unlikely to derail the Kingdom’s growth trajectory.
“The most immediate impact is this uncertainty delaying the interest rate cutting cycle, and I think that’s something corporates and investors need to be able to navigate during this year,” Sanders said.
She added that the US Federal Reserve is being cautious, with bond markets anticipating a possible rate cut in June. However, the timing will depend on inflation trends.
Despite fluctuations in the dollar, Saudi Arabia’s outlook remains optimistic.
“It’s positive for oil economies. It’s been more challenging for the emerging markets,” Sanders said, adding that the Kingdom’s non-oil sectors continue to expand.
She also highlighted Saudi Arabia’s decreasing reliance on oil price movements, saying: “The effective use of policy tools means that currently, there’s less sensitivity to oil prices compared to what we’ve seen in the past.”
Faisal Al-Azmeh, head of Central and Eastern Europe, the Middle East, and Africa equity research at Goldman Sachs, echoed this sentiment, predicting stable economic conditions for the Kingdom despite external pressures.
“Goldman expects a rate cut in the second quarter of this year and another one in the fourth quarter of this year,” he said, adding that another is likely in the second quarter of 2026.
While oil will remain a key source of funding for economic diversification, he emphasized that Saudi Arabia’s “structural reforms” and “meaningful amount of oil revenue diversification” have significantly reduced its dependence on oil prices compared to five years ago.
Foreign investment continues to pour into the Kingdom, driven by the country’s growing initial public offering market and broader economic reforms.
Sanders highlighted that foreign direct investment continues to rise across various sectors while public markets remain highly liquid.
The expansion of Saudi Arabia’s capital markets is part of a broader effort to drive economic diversification under Vision 2030.
Sanders pointed to a major shift in the Kingdom’s economic structure, underlining that the private non-oil sector now accounts for 50 percent of the gross domestic product, up from 30 percent two decades ago.
“We’ve also seen increased diversification of the labor force, certification of funding with an increase in borrowing,” she said.
More companies are raising capital from foreign sources, including private equity, growth funds, and infrastructure funds. “So that’s all the proof that Vision 2030 is working and delivering results,” she added.
Charles-Henry Gaultier, equity capital markets managing director at Paris Lazard, credited Saudi Arabia’s proactive regulatory reforms for increasing foreign investor confidence.
“I think it’s really the decisive action taken by the government here, quite frankly, to align not only market regulations on international practice, which made global investors very comfortable deploying money in the region, but also all the technicalities of market functions that were there again aligned with best world practice,” he said.
Charles-Henry Gaultier, equity capital markets managing director at Paris Lazard. Screenshot
He also highlighted the importance of the Kingdom’s IPO as a turning point in the market’s development.
“Because you need to start with one transaction, the government there again led the way with the emblematic IPO of Aramco, which demonstrated to the world the depth and liquidity of the market,” he added.
Saudi Arabia’s inclusion in global indices has further accelerated foreign capital inflows.
“With the entrance of the Kingdom and the markets of the Kingdom into the global indices, MSCI (Morgan Stanley Capital International), Russell, there again. It just provides more and more liquidity, more comfort to global investors, that they can deploy money, trade in and out of securities in the Kingdom,” Gaultier said.
He noted that Saudi IPOs alone accounted for nearly $4 billion in capital raised, making up one-third of the 23 percent growth in overall EMEA initial listing volumes.
Shakir Iqbal, head of CEEMEA Equity Sales at J.P. Morgan, pointed out that international investors are increasingly looking to the Kingdom to diversify their portfolios.
“You’d like to think that everyone’s coming here because these IPOs tend to perform, which they do. But I think it’s also the fact that you basically have structural underweight positions for global investors in the region,” he said.
He added that these initial listings and equity capital market activity offer investors a way to increase exposure to Saudi assets.
Saudi Arabia’s IPO market is also evolving beyond traditional sectors. “You’re actually seeing a representation of new economy companies,” Iqbal said, adding: “You’re seeing tech companies list. You’re seeing consumer names that we haven’t seen before, health care names, real estate.”
This diversification, he noted, is attracting global investors looking for unique opportunities in the region.
Faisal Al-Azmeh, head of Central and Eastern Europe, the Middle East, and Africa equity research at Goldman Sachs. Screenshot
Goldman Sachs remains bullish on the Kingdom’s financial markets in 2025. “We are overweight (on Saudi Arabia). We’re also constructive on a few other GCC (Gulf Cooperation Council) markets,” Al-Azmeh said.
He projected overall earnings per share growth of around 14 percent for the year, “largely coming from the financial space and the material space.”
Al-Azmeh also pointed to strong opportunities in regulated energy companies and real estate, particularly in the UAE.
Global economy to grow steadily in 2025 despite market shifts, say experts at Saudi forum
Updated 18 February 2025
Miguel Hadchity
RIYADH: The world economy is set to maintain steady growth in 2025, buoyed by resilient fundamentals despite market volatility and structural shifts, according to Citigroup’s Global Chief Economist Nathan Sheets.
Speaking at the Capital Markets Forum in Riyadh, Sheets outlined key themes shaping the year ahead, focusing on global economic resilience, normalization of inflation and interest rates, and exceptionalism in market performance.
“During the year ahead, the relatively solid fundamentals of the global economy are likely to transcend any kinds of uncertainties that we face,” Sheets said during the event, which runs from Feb. 18 to 20.
Emerging markets also took center stage, with Raman Subramanian, managing director and global head of index research and development at MSCI, emphasizing the growing role of the Gulf Cooperation Council in global indices.
“Digging deeper into the MSCI Emerging Market Index, you see the weight of the GCC has gone from about 1.5 percent to about 7 percent today,” he said.
Subramanian also noted technology’s rising prominence in global benchmarks, with AI-adjacent sectors now accounting for over 30 percent of industry weight.
Meanwhile, Ahmed Shams El-Din, managing director and head of global research at EFG Hermes, described the Middle East as a promising region for growth and value creation but noted its uneven development.
“Countries are very different in terms of economic fundamentals, in terms of the opportunities for growth and the challenges each country is facing on a standalone basis,” he explained.
Economic diversification and non-oil growth remain central themes, with Saudi Arabia and the UAE leading the way. Shams El-Din cautioned, however, that population growth and capacity constraints could moderate the pace of expansion.
“Capacity constraint and funding challenges are going to play out parallel to the real developments that we are seeing on the ground,” Shams El-Din said.
Subramanian also highlighted major trends shaping global markets, including technology transformation, health care, environmental resource management, and evolving societal and lifestyle shifts.
“The move toward renewables has really impacted the way investors are allocating to the energy sector,” he added.
The forum, held at the KAFD Conference Center, is set to explore deeper macroeconomic trends and capital market shifts. Key sessions include discussions on the Middle East’s growing role as a financial hub and the future landscape of global markets.
