- Traded government debt instruments climbed 132.4% to SR15.60 billion
- Foreign investment in Saudi financial market grew 1.65% to SR481.8 billion
RIYADH: Saudi Arabia’s debt instruments market rose in the second quarter of the year, led by non-listed corporate debt, which jumped 513.8 percent year on year to SR1.2 billion ($320 million) from roughly SR200 million.
According to the Capital Market Authority’s quarterly statistical bulletin, traded government debt instruments climbed 132.4 percent to SR15.60 billion, compared to SR6.72 billion in the same period of 2024.
This comes as the CMA continues to introduce new investment products and structural reforms to diversify investor portfolios beyond equities. The regulator also published a consultation proposing a framework for special purpose acquisition companies on Nomu, the Kingdom’s parallel market, to facilitate private sector listings and expand investment vehicle options.
“The Saudi financial market posted positive performance across a number of investment instruments by the end of the second quarter of 2025, as investors moved toward diversifying their portfolios and investment products, and not limiting themselves to equities alone, in an effort to maximize returns and reduce risks,” the CMA said.
Individual investment portfolios in the main market rose 11.95 percent to SR13.91 million, while the number of individual investors holding these portfolios increased 6.7 percent to SR6.90 million. Managed portfolios climbed 29.5 percent to 103,630, with total assets up 9 percent to SR352.60 billion.
These figures “reflect the expansion of the individual investor base and the increasing engagement with the diverse investment instruments available in the capital market,” the CMA said.
Foreign investment in the Saudi financial market grew 1.65 percent year on year to SR481.8 billion, with foreign assets held by clients at financial institutions rising from SR21.3 billion in the first quarter to SR26.1 billion in the second quarter.
“The increases seen in foreign markets, particularly the recent rise in the US market, were among the main reasons for the increase in asset values, as the S&P 500 index rose by more than 10 percent in the second quarter,” the authority added.
The investment funds sector also posted strong gains. The number of funds rose 24.8 percent to 1,735, with total assets up 27.8 percent to SR781.41 billion. Subscribers climbed 30.16 percent to over 1.76 million, the highest in history, and real estate funds accounted for 31.6 percent of public subscribers and 71 percent of private subscribers.
Listed corporate debt instruments rose 13.3 percent in traded value to SR426 million. New non-listed corporate debt issuances jumped 94.37 percent to SR3.01 billion, while outstanding issuances climbed 16.2 percent to SR124.87 billion.
“The results confirm the strength of the Saudi capital market and its investment appeal, as the Capital Market Authority continues to develop its systems and enhance its legislative and regulatory framework in line with international best practices,” the authority said.
“This enhances the market’s ability to attract domestic and foreign investors and supports the diversification of investment instruments, contributing to economic growth targets in line with Saudi Vision 2030,” it added.
Source: www.arabnews.com