Tadawul to see more IPOs in 2025, new financial instruments: Al-Rumaih

Mohammed Al-Rumaih, CEO of the Saudi Exchange (Tadawul)

The listings on the Saudi Exchange (Tadawul) last year catapulted the market to a global leader in the number of IPOs, CEO Mohammed Al-Rumaih said, adding that the momentum is expected to continue in 2025.

Speaking to Argaam on the sidelines of 2025 Capital Markets Forum (CMF) in Hong Kong, Al-Rumaih noted that since the start of the year, about 23 companies listed on the main and parallel markets, marking a rise of nearly 20% year-on-year.

Around 24 listings are approved and pending, while over 50 applications are under review.

Foreign investor ownership in the Saudi market topped SAR 400 billion, up from SAR 20 billion in 2016, an 85-fold increase in less than a decade. The number of registered foreign investors now exceeds 4,100 and grows weekly. Asian investors remain a small portion but are the fastest-growing group, the CEO said.

He added this growth reflects rising international interest, especially from Asia, driven by market developments like a new Hong Kong ETF investing in Saudi government sukuk, which supports the local debt market.

Al-Rumaih said Tadawul is working with regulators to introduce new financial instruments, including depositary receipts, foreign company listings, and easier debt issuance.

He noted that market infrastructure is advancing through phase two of post-trade development, boosting flexibility to launch new products and respond faster to market changes.

He highlighted that the Saudi market now offers diverse opportunities across sectors and company sizes, attracting a broad investor base, particularly long-term investors.

He expressed confidence in the market’s future, pointing to a strong local and international investor interest as a sign of trust in Saudi Arabia’s economy and ongoing regulatory improvements.