Nour El-Shaeri

RIYADH: Capital market institutions in Saudi Arabia posted a strong financial performance in 2024, with revenues surging by 29.6 percent to SR17 billion ($4.5 billion) and profits rising 39.3 percent to SR8.8 billion, according to the Capital Market Authority’s annual report.

The number of licensed institutions expanded to 186, reflecting both increased operational capacity and rising demand for services across the sector.

This solid performance was supported by a series of regulatory reforms introduced by the CMA throughout the year. Key updates included amendments to the Capital Market Institutions Regulations, the Investment Account Instructions, and the Implementing Regulation of the Companies Law for Listed Joint Stock Companies.

The authority also launched new guidelines for the Offering of Real Estate Contributions Certificates, establishing a regulatory framework to facilitate the registration and issuance of these investment instruments.

The report highlights the sector’s alignment with Vision 2030’s Financial Sector Development Program, which aims to strengthen financial institutions’ roles in supporting private sector growth and national economic diversification.

The growth in the number of licensed entities—and their improved financial results—signals a more resilient financial ecosystem capable of backing major national projects and private enterprise.

Investor protection remained a priority. In 2024, the CMA resolved 121 cases, awarding over SR389 million in compensation to 921 affected investors. The average litigation period dropped from 5.5 months in 2023 to 4.4 months, marking a significant improvement in dispute resolution efficiency.

Enforcement activity also intensified, with 171 violators receiving enforceable decisions and 45 enforcement requests actively pursued.

CMA Chairman Mohammed El-Kuwaiz emphasized that the authority’s strategic plan for 2024-26 centers on enhancing the capital market’s ability to finance growth, strengthening institutional governance, and safeguarding investor rights.

He noted that the plan was shaped through stakeholder engagement and a comprehensive market analysis, in line with the broader Vision 2030 agenda.