Saudi Arabia has experienced a notable surge in IPOs and capital market listings, propelled by government’s Vision 2030. Government’s plan to diversify beyond oil sector has spurred heightened investment activity and this received a fillip following the listing of state-owned non-oil entities. There’s more to it. Saudi Arabia is home to one of the fastest-growing markets in the region, boasting of young demography and rapid technological adoption.
The buoyancy in the primary issuances market is attributed to robust economic growth. The investor participation too remained strong owing to listing gains. Tadawul, the Saudi stock exchange, has grown exponentially from being a restricted capital market serving local investor needs with limited investment opportunities, to becoming the 10th largest exchange globally with a total market capitalization of SAR 11,259.3 billion (USD 3,002.5 billion) by December 2023.