RIYADH: Saudi Arabia’s general disposition around capital allocation is diversified, as financial institutions in the Kingdom are “savvy and strong” with long-term strategies, according to a senior executive.
In an interview with Arab News on the sidelines of the Middle East Investment Conference held in Riyadh, President and CEO of CFA Institute Marg Franklin noted that Saudi Arabia aims to move away from its heavy reliance on oil by diversifying its investment portfolio.
This diversification plan involves investing in small and medium-sized enterprises within the Kingdom to broaden the economy’s scope.
She said: “If you look at Saudi Arabia’s general disposition around capital allocation, it really centers on diversification, and that is really where we’ve seen the savviest and strongest financial institutions who have a very long-term view and very long-term objectives really achieve those ambitions for the capital.”
Franklin highlighted the importance of asset owners in the Middle East, who prioritize serving their citizens over short-term gains, emphasizing long-term objectives and sustainability in capital allocation.
Additionally, amid Saudi Arabia’s ambitious Vision 2030 program, Franklin noted that the CFA Institute emerges as a key player in shaping the nation’s economic landscape.
With a three-pronged approach focused on education, advocacy, and policy, the institute is instrumental in fostering a robust and well-functioning capital market.
“When we look here in Saudi Arabia, it’s an ambitious program for 2030 and what’s exciting about it is how much it’s related to the population of Saudi, so it really lines up with those last six words of our mission for the ultimate benefit of society,” Franklin said.
She added: “The key things where CFA Institute, I think has a distinct role to play is first of all in developing and enhancing the capital markets, making sure they’re efficient and fair.”
Franklin continued: “Because at the end of the day, when you’re bringing in global capital or exporting global capital, there is a common language that goes with it. But there will be unique features here in the region, specifically Islamic finance.”
The second aspect Franklin highlighted is capacity building and talent development. This includes the renowned CFA program, known for its comprehensive curriculum and ethical foundation, providing a common platform for investment professionals globally.
“Then finally, just building those baseline skills, because we know one of Saudi Arabia’s key objectives is to build financial literacy, and that’s crucial if you’re going to increase the savings of citizens,” Franklin said.
