This episode of the podcast discusses the major transformations occurring in the Saudi financial market, featuring engineer Khaled Al-Hasan, CEO of the Saudi Exchange Group. The episode addresses the changes stemming from the Saudi Vision 2030 and how this vision has affected the development of the financial market and its products, as well as the role of the Saudi Exchange Group in enhancing the infrastructure of the financial sector. The discussion begins with the history of the market’s establishment, moving through the significant transformations it has undergone, such as the listing of Aramco, and the challenges the market faced in this context. The episode also covers the market’s role in attracting foreign investments and the challenges faced by small and medium enterprises in accessing the market. It also discusses investor satisfaction with the services provided by the exchange and the necessary updates to improve user experience on the platform.
The conversation includes many insights and ideas related to the future of the financial market and how it can become a global investment hub, reflecting the Kingdom’s commitment to its ambitious projects aimed at achieving sustainable development. The dialogue also touches on some critical aspects related to challenges that may hinder development and how to overcome them to boost investor confidence in the market.
History of the Saudi Exchange Group and its Development
The roots of the Saudi Exchange Group date back to 1932, when the story of the Saudi financial market began with the establishment of the first joint-stock company, the Arab Automobile Company. In the 1970s and 1980s, a number of joint-stock companies began to emerge, but until 1984, there was no organized market. In that year, a royal decree was issued to regulate and legislate stock trading, which contributed to the establishment of the official market. Subsequently, in 2003, the Capital Market Authority was established, which issued several regulations to organize the market. By mid-2007, the Exchange Group transformed into a closed joint-stock company owned by the Public Investment Fund, leading to significant changes in the Saudi financial market.
The Exchange Group has introduced numerous innovations and new financial products, such as derivatives and bonds, which have contributed to attracting foreign investments. Following the Kingdom’s Vision 2030, the market witnessed radical transformations, such as opening up to global markets and increasing diversity in the products available for trading, making the Saudi market one of the largest financial markets in the region.
The Transformation of the Saudi Stock Market After Vision 2030
The Saudi Vision 2030 is tied to profound changes in the financial market, focusing on making the market more attractive to foreign investors. This has been achieved by improving laws and regulations, raising transparency levels, and enhancing governance. Through these steps, Saudi Arabia has managed to attract significant investments, amounting to approximately 339 billion riyals to date, which represents a large portion of market ownership. After the market opened, the percentage of foreign companies in the market increased, helping to enhance liquidity.
The transformation strategy included introducing new financial instruments and modifying existing regulations to facilitate listing and trading processes. Additionally, facilitation was provided for foreign investors, which helped to boost confidence in the market. The Saudi market is now targeting the attraction of more technology companies, reflecting the importance of this sector in the Saudi economy. Through these developments, the Saudi market has become one of the leading financial markets in the region.
Challenges Facing the Saudi Exchange Group
The Saudi Exchange Group faces several challenges in its journey towards achieving its goals, including improving the quality of services provided to investors and achieving their satisfaction. Despite considerable achievements, many investors express dissatisfaction with the performance of digital platforms, such as the app and the website, calling for necessary improvements in user experience.
In addition to
The increasing competition in the financial market requires the Tadawul Group to develop its systems and technical infrastructure to meet investors’ needs. There is also an urgent need to keep up with global trends in financial technology, which necessitates significant investments in platform development and improving the quality of data available to investors.
The Role of the Tadawul Group in Enhancing the Saudi Financial Market
The Tadawul Group plays a pivotal role in enhancing the Saudi financial market by providing an attractive and innovative regulatory environment. By offering advanced trading platforms and diverse services for investors, the Tadawul Group boosts the market’s ability to attract new investments. The group focuses on developing systems and regulations in line with best global practices, contributing to increased market efficiency.
Today, the Tadawul Group is considered the infrastructure of the Saudi financial market, facilitating the organization of listing and trading operations through numerous companies, including brokerage firms and depositories. The Tadawul Group also works on developing financial products, such as investment funds and derivatives, to meet various investor needs.
Strategies for Developing the Saudi Financial Market
The strategies employed by the Tadawul Group include enhancing transparency and competition in the market. By implementing strong governance systems and providing accurate information to investors, the Tadawul Group aims to build investor confidence in the market. The focus is also on improving the investor experience by updating applications and digital platforms, facilitating and accelerating trading processes.
Investments in financial technology are a crucial part of the Tadawul Group’s strategy, as the group seeks to use innovation to develop new services and improve operational efficiency. Through partnerships with fintech companies, the Tadawul Group can offer diverse services that meet investors’ needs and contribute to enhancing the trading experience.
Future Trends for the Saudi Tadawul Group
The Tadawul Group is looking to achieve its ambitious goals by expanding its offerings of products and services. By enhancing its market identity and attracting foreign investments, the Tadawul Group expects to become a leading financial center in the region. The group also aims to develop more financial products that suit investors’ needs, including sustainable instruments.
Additionally, the Tadawul Group works on promoting financial education among investors, helping them make informed investment decisions. By organizing workshops and seminars, investors are educated about market risks and available opportunities. These steps are part of a broader strategy aimed at enhancing investment culture in the Kingdom.
Updates to the Tadawul App and User Experience
Discussions about the Tadawul app indicate that there are significant changes expected in the app and the official Tadawul website. Speakers note that the current user experience is somewhat poor, as users face challenges in obtaining accurate and quick reports. For instance, there is a request for providing historical reports dating back to 2000, which hinders users’ ability to effectively track their trades. Moreover, the system politely apologizes for the delays, which may sometimes frustrate users. Improving user experience is a primary objective, as developers aim to update the system to facilitate access to information and provide a better experience for investors. This development is especially necessary given the increasing awareness of investment in the stock market, requiring app owners to provide accurate and real-time information to users.
Types of Investors and Investment Strategies
Discussions showcase the different types of investors and their strategies in the market. Emphasis is placed on the importance of understanding the nature of investments before making decisions. While some investors prefer to invest in stocks, others may choose bonds or sukuk as safer options. Investors can be categorized based on the level of risk they are willing to take. Those with a low risk appetite tend to opt for low-risk products like government bonds, while those seeking higher returns may gravitate towards stocks or derivatives. This diversity in investment options requires a good understanding of the market and its tools, in addition to the need for continuous evaluation of personal financial situations and market conditions.
Derivatives
Finance and Investor Awareness
Highlighting financial derivatives is an important part of the discussion, as it clarifies how they work and their significance in investment strategies. Financial derivatives are financial instruments whose value depends on another asset, such as stocks or bonds. They can be used to hedge against risks or to profit from market movements. However, investing in financial derivatives is considered complex and may not be suitable for ordinary investors without a deep understanding of the market. Therefore, it is suggested that new investors use available simulation tools for training before proceeding to actual investment. These tools provide a safe environment for testing investment strategies and evaluating performance, helping investors make informed decisions in the future.
Expansion in Global Financial Markets
The idea of expanding into financial markets outside the Kingdom of Saudi Arabia was discussed, as some look toward the possibility of the company acquiring new markets. This type of expansion requires careful studies and a comprehensive understanding of the target market. Acquiring other markets can be risky and may not always be successful, as various factors such as local laws and cultural challenges come into play. However, if there is a strong reason or unique opportunity, expansion can be part of sustainable growth strategies. It is important for companies to strive for clear and specific strategies before making the decision to invest in new markets, considering potential risks and expected returns.
Future Goals for the Saudi Financial Market
Through discussions, the great ambition of the Saudi financial market to become one of the top ten markets in the world by 2030 is evident. This goal requires continuous efforts to improve market infrastructure, increase listings, and stimulate investments. Increasing the diversity of available financial products can attract more investors, including individuals and companies. Additionally, enhancing transparency and compliance with international standards can boost investor confidence in the market. Achieving this goal is considered part of the Kingdom’s vision, reflecting the need to engage the financial community in national economic growth. Current figures show that the Saudi financial market is experiencing significant growth, paving the way for achieving the desired future goals to elevate the financial status in the country.
The episode was summarized using artificial intelligence ezycontent
اترك تعليقاً