Arab News
Arab news, Wed, May 21, 2025 | Dhu al-Qadah 23, 1446
Saudi capital market institutions see 29.6% revenue growth in 2024
Saudi Arabia:
Capital market institutions in Saudi Arabia
posted a strong financial performance in 2024, with revenues surging by 29.6
percent to SR17 billion ($4.5 billion) and profits rising 39.3 percent to SR8.8
billion, according to the Capital Market Authority’s annual report.
The number of licensed institutions expanded to
186, reflecting both increased operational capacity and rising demand for
services across the sector.
This solid performance was supported by a series
of regulatory reforms introduced by the CMA throughout the year. Key updates
included amendments to the Capital Market Institutions Regulations, the
Investment Account Instructions, and the Implementing Regulation of the
Companies Law for Listed Joint Stock Companies.
The authority also launched new guidelines for the
Offering of Real Estate Contributions Certificates, establishing a regulatory
framework to facilitate the registration and issuance of these investment
instruments.
The report highlights the sector’s alignment with
Vision 2030’s Financial Sector Development Program, which aims to strengthen
financial institutions’ roles in supporting private sector growth and national
economic diversification.
The growth in the number of licensed entities —
and their improved financial results — signals a more resilient financial
ecosystem capable of backing major national projects and private enterprise.
Investor protection remained a priority. In 2024,
the CMA resolved 121 cases, awarding over SR389 million in compensation to 921
affected investors. The average litigation period dropped from 5.5 months in
2023 to 4.4 months, marking a significant improvement in dispute resolution
efficiency.
Enforcement activity also intensified, with 171
violators receiving enforceable decisions and 45 enforcement requests actively
pursued.
CMA Chairman Mohammed El-Kuwaiz said that the
authority’s strategic plan for 2024-26 centers on enhancing the capital market’s
ability to finance growth, strengthening institutional governance, and
safeguarding investor rights.
He noted that the plan was shaped through
stakeholder engagement and a comprehensive market analysis, in line with the
broader Vision 2030 agenda.