Saudi investment landscape fueled by its equity, debt markets
Kingdom’s economic growth is set to continue to lure investors: J.P. Morgan official
Saudi Arabia’s investment landscape is poised for a prosperous future, fueled by its equity and debt markets, according to a senior official from J.P. Morgan.
In an interview with Arab News during the Saudi Capital Market Forum in Riyadh, Omar El-Amine Fichtali, head of Investment Banking at J.P. Morgan Saudi Arabia, shared insights about the Kingdom’s growing allure for investors.
He highlighted the Kingdom’s comprehensive socioeconomic transformation and regulatory reforms as key drivers of its global appeal.
“Saudi Arabia stands out as an exciting, compelling investment story for our investors from the region or globally,” Fichtali remarked, adding: “Saudi Arabia is a top-down, long-term structural story underpinned by socioeconomic transformation and the execution of a number of regulatory reforms that help to promote Saudi Arabia globally.”
Fichtali pointed to the stock market as a clear indicator of the Kingdom’s vibrant economic activity and its diverse and expansive economy.
He emphasized that Saudi Arabia’s equity and debt markets reflect the nation’s strong economic growth, with initial public offerings acting as a strong catalyst for optimism about the future.
Discussing the performance of recent IPOs, Fichtali noted: “All the IPOs that have taken place in Saudi Arabia have performed plus 60, 70 percent in the last 12 months, which is a testimony of the strength of this market.
Unlike other emerging markets or even international markets, the performance was negative or just neutral.”
Looking ahead, he mentioned J.P. Morgan’s active participation in upcoming offerings for 2024 and 2025, emphasizing the promising outlook for the Kingdom’s IPO market. Reflecting on Saudi Arabia’s development, Fichtali drew parallels with other emerging markets in terms of demographic growth and the embrace of new industries, but was keen to highlight the unique attributes that set the Kingdom apart.
“The indicators or the pattern of countries of the Organisation for Economic Co-operation and Development in terms of the size of the economy, $1 trillion, gross domestic product per capita above $50,000, pegged currency, low debt to GDP, all these elements make Saudi Arabia’s macro very attractive, and we are seeing investors increasingly looking at this market,” he explained.
Fichtali praised the forum for offering a platform to explore opportunities and engage with investors, market leaders, and representatives from significant entities like Tadawul and the Capital Market Authority.
The two-day event organized by Saudi Tadawul Group, held under the theme “Powering Growth,” served as a nexus for transformative dialogue and innovation, fostering the convergence of emerging markets with established financial frameworks.
The educational opportunities offered at the forum also play a vital role in developing a skilled workforce necessary for the effective functioning of capital markets.
Saudi Arabia is a top-down, longterm structural story underpinned by socioeconomic transformation.