RIYADH: 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, 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 socio-economic 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,” El-Amine remarked, adding: “Saudi Arabia is a top-down, long-term structural story underpinned by socio-economic transformation and the execution of a number of regulatory reforms that help to promote Saudi Arabia globally.” 

El-Amine 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, El-Amine 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, El-Amine 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. 

El-Amine 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.  

He outlined J.P. Morgan’s objectives to deepen its understanding of industry key performance indicators and targets, bolster relationships with participants, and network with peers from other institutions.