"S&P Global": Reforms and "Vision 2030" support the prospects

After achieving a major leap over the past ten years, the Saudi Stock Market (Tadawul) remains positive prospects thanks to government initiatives and high financing needs for “Vision 2030” projects, in light of the expectations to attract more local and foreign capital in the long run, despite the risks of global economic growth. In addition to the ranks of stock markets in the region, Tadawul has become the largest stock exchange in emerging markets outside Asia in terms of its market value, which rose to $ 2.7 trillion at the end of last year between 2014 and 2024, according to a recent report issued by S&B Gogal for credit rating. Nevertheless, the report indicated that the growth journey is still in its early stages compared to the most important global markets, as the government -related entities still dominate the market as oil giant Aramco makes up at the end of December, while 7 businesses are listed at 80% of the value, including 6 bodies associated with the government, along with the ‘Rajhi bank’. Attempts to diversify the Saudi economy are looking for the kingdom to diversify its economy away from oil, and under the instruments of this, the multiplicity of sectors in the stock market, which has long been under the control of banks and petrochemical enterprises, through a surge in initial proposals such as technology, services, fitness clubs and consumer fields. Tadawul was witnessed by the inclusion and start of the trading of five companies in its main market during the first quarter of this year, with a total market value of approximately 15.75 billion rows, and other companies are preparing to include their shares such as “United Cartoon Industries”, “Specialized Medical” and “Flynas” and others. A greater role for the market in “Vision 2030” See Standard & Poor’s “that the market will play a greater role in supporting the implementation of” Vision 2030 “projects, which will require significant funds that can not only be raised by loans, and the development of the stock market will enable businesses and financial institutions to invest in the same time. Long -term market will also benefit from infrastructure reforms and organizational initiatives taken by the kingdom, such as opening the foreign investment institutions market, investing in infrastructure, offering new platforms and products, and tightening the disclosure and management procedures. The entry of foreign investors, which will increase the liquidity and enable shareholders to achieve profits from their belongings, note that the diversity of sectors creates opportunities for investing in the local economy and supports long -term economic growth. However, the report indicated that the percentage of foreign investors in the market, despite the gradual growth, is still poor compared to other markets. Foreign investors’ belongings were about 4.2% of the total value of the market by the end of last year, compared to 54% on the Brazil Stock Exchange and 21% on the Dubai Stock Exchange at the end of last year, and 36% on the Istanbul Stock Exchange until April 28.