RIYADH: Saudi Arabia’s capital market continues to experience robust growth, driven by Vision 2030 and a flourishing economic landscape, according to a top official.
Speaking with Arab News on the sidelines of the Capital Market Forum in Riyadh, CEO of EFG Hermes Saudi Arabia Saud Al-Tassan highlighted the unique strength of the local market.
The top official highlighted that the Saudi stock market has become a “highly attractive venue” for leading private companies to list their initial public offerings.
“I think the Saudi market is growing at a very interesting rate, driven mainly by the economy and all the changes, the Vision 2030. We’re going through a transformational period right now for the Kingdom,” Al-Tassan said.
“One of the unique things in the Saudi market is that it has very strong local demand and this is very unique compared to a lot of regional markets. Although there is strong demand coming from international names, the local demand still takes up the bigger chunk,” he added.
EFG Hermes expanding offerings, eyes market leadership
While Al-Tassan did not disclose specific upcoming announcements, he confirmed that EFG Hermes is actively working on multiple initiatives. “We are continuously innovating and trying to offer the best services to our clients, and we are always thinking of different ways to add value, and hopefully, there will be some interesting announcements soon,” he said.
Regarding securities lending, Al-Tassan acknowledged that while it contributes a small percentage to EFG Hermes’ revenue in the Kingdom, the firm sees it as a strategic priority.
“It’s part of evolving and offering our clients full-fledged services. We’re hoping that will increase in the coming years,” he said.
IPO market witnessing unprecedented growth
Saudi Arabia’s initial public offering market is experiencing a rapid expansion, with a growing number of offerings under review by the Capital Market Authority. EFG Hermes has played a key role in the market, closing several IPOs last year and maintaining an even larger pipeline for 2025.
“IPOs are going through a very interesting period right now in Saudi. The pipeline with the CMA is growing quite rapidly, and we have a very large pipeline this year that we’re eager to bring to the market,” Al-Tassan said.
He reaffirmed EFG Hermes’ position as a market leader in equity capital markets across the Middle East. “Last year, we were very active, and it was a very successful year for EFG in terms of IPO advisory. This year, we have an even larger pipeline, and we’re optimistic it will be an even better year.”
Al-Tassan added: “We have a number of very sizable and highly sought-after IPOs we’re working on. There has been significant growth from last year, both on the ECM and M&A front.”
Regulator’s role and foreign investment surge
According to the top official, regulatory reforms and government-backed initiatives have been instrumental in elevating the Saudi landscape.
“The regulator has played an instrumental role in bringing the market to where it is today. We anticipate a lot of foreign participation this year, driven by expected IPOs and government-related company listings,” he noted.
Debt market and future growth prospects
While the debt market is not currently a significant revenue driver for EFG Hermes, Al-Tassan highlighted its strategic importance. “We expect it to be a significant part of our business in Saudi in the coming years.”
Looking ahead, Al-Tassan remains optimistic about the Kingdom’s capital market expansion, citing Vision 2030 as a key driver.
“As long as IPOs feature quality names, there will be strong demand. We do not expect any slowdown, and our strong pipeline reflects this ongoing investor interest,” he added.
