Startup Wrap – cross-border funding and acquisitions flourish as MENA activity steps up 

Startup Wrap – cross-border funding and acquisitions flourish as MENA activity steps up 
US-based AI platform aiXplain benefitted from a pre-series A funding round led by venture capital firm Wa’ed Ventures. Supplied
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Updated 01 October 2024
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Startup Wrap – cross-border funding and acquisitions flourish as MENA activity steps up 

Startup Wrap – cross-border funding and acquisitions flourish as MENA activity steps up 

CAIRO: Regional startup activity has seen many acquisitions and funding rounds in recent weeks, with climate technology, artificial intelligence, and Web3 garnering the most attention. 

Saudi Arabia’s venture capital firm Wa’ed Ventures, a $500-million Aramco subsidiary, led California-based AI platform aiXplain’s $6.5 million pre-series A funding round. 

Backed by US-based firms including Transform VC and Calibrate VC, aiXplain has raised a total of $16.5 million since its inception, aiming for a global rollout of AI solutions. 

Founded in 2020 by Hassan Sawaf, aiXplain has designed an integrated platform to simplify the creation, deployment, and management of AI solutions. 

The company aims to democratize access to AI innovation by enabling the building of advanced solutions through natural language prompts for users with no coding background. 

This approach allows businesses to maximize operational efficiencies by accelerating the time and effort needed for integrating AI into large-scale operations. 

“Hassan and his team deeply understand the global disparity in AI access and the potentially damaging effects of leaving this gap unaddressed,” said Fahad Alidi, managing director and CEO at Wa’ed Ventures. 

He added that aiXplain “has already helped close the AI innovation gap in the MENA (Middle East and North Africa) region, and we see significant potential for the company to localize its solutions in the Kingdom.” 

To accelerate its entry into the Kingdom, aiXplain’s existing subsidiary in Saudi Arabia will function as the company’s MENA region headquarters. 

Beyond the Kingdom, aiXplain works with businesses worldwide to build AI solutions efficiently, as well as fine-tune and benchmark AI models. 

Oman-based climate tech 44.01 secures $37m in series A funding 

Oman-based climate technology startup 44.01 has closed a $37 million series A funding round, led by Equinor Ventures with participation from Shorooq Partners, Air Liquide Venture Capital, Alumni Ventures, and other investors. 

Founded in 2020 by Talal Hassan, Ehab Tasfai, and Karan Khimji, 44.01 specializes in eliminating carbon dioxide by converting it into rock. 

The funding will enable the firm to continue refining its technology, develop commercial-scale projects, and expand its deployment internationally. The company’s tech has been piloted in Oman and the UAE. 

Talal Hasan, founder and CEO of 44.01, said: “We believe mineralization can play a significant role in protecting and repairing our climate. We are grateful to our investors for committing to that mission and for demonstrating their confidence in our technology.” 

He added: “Our investors bring a wealth of international expertise and experience that will help us to accelerate our development and ultimately mineralize CO2 at scale world-wide.”

Sentient Labs raises $85m in seed investment 

UAE-based Web3-focused startup Sentient Labs has raised an $85m through a seed investment round co-led by Pantera Capital and Framework Ventures, with additional funding from Arrington Capital, Canonical, Dao5, and others. 

Founded in January 2024 by Sandeep Nailwal, Pramod Viswanath, and Himanshu Tyagi, Sentient Labs is dedicated to democratizing AI development to ensure its benefits are shared by humanity as a whole. 

Sentient Labs will use the capital to accelerate the development of its open-source AI platform. 

Muller & Phipps acquires Power League Gaming 




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Regional technology distribution house Muller & Phipps Middle East Group has acquired UAE-based gaming and esports agency Power League Gaming for an undisclosed value. 

The acquisition will see Muller & Phipps invest in scaling Dubai operations and expanding into Saudi Arabia in the fourth quarter of 2024. 

Founded in 2013 by John Lacey, Power League Gaming offers comprehensive solutions for brands entering the gaming sector and publishers engaging audiences through esports events, content creation, and omni-channel ecosystem development. 

Muller & Phipps will acquire all company assets, retaining the management team to lead the business. 

“With Power League Gaming we see market experts who have grown rapidly and who have the talent and drive to take the business and the category itself to the next level across our region. We are excited to launch into Saudi Arabia later this year and to offer local clients the latest and most commercially sound esports and gaming strategies in the field,” group CEO of Muller & Phipps Middle East Group Holdings, Trevor Price, said. 

Tokinvest secures $500k in pre-seed funding 

UAE-based tokenization platform Tokinvest has raised $500,000 in pre-seed funding from a group of investors, including Michael Ourabah, CEO of global infrastructure provider BSO. 

Founded in 2024 by Scott Thiel and Matthew Blom, Tokinvest creates virtual tokens representing rights to assets, connecting real-world asset issuers with global investors through its marketplace. 

The newly acquired funds will be used to enhance Tokinvest’s technological infrastructure, expand its team, and accelerate market penetration. 

“We are immensely grateful for the trust and support from our early investors. This funding fuels our technological and operational development and solidifies our strategy to lead in the real-world asset tokenization space. We are excited about the opportunities that lie ahead and are keenly focused on launching our marketplace later this year,” Thiel, the company’s CEO, said. 

Swyt concludes undisclosed seed round 

UAE-based IT solutions provider Swyt has concluded an undisclosed seed funding round. 

Founded in 2022 by Edouard Bouvet, Swyt offers an all-in-one platform designed to simplify and secure IT operations for businesses. 

The seed funding will support Swyt’s mission to accelerate research and development on their platform and expand its presence throughout the Gulf region. 

Dopay closes $13.5m series A extension round 




Dopay team. Supplied

Egypt-headquartered fintech Dopay has closed a $13.5 million series A extension round, adding to a previous $18 million series A round raised in 2021. The new funding initiative was led by Argentem Creek Partners with participation from existing investors. 

Founded in 2014 by Frans van Eersel and Ahmed Nassef, Dopay offers a virtual banking platform that digitizes cash payments from employers to workers and other beneficiaries. 

The fresh funding will enable Dopay to expand in Egypt, launch new financial services, and extend its multi-bank, multi-country platform to other markets. 

“This funding comes at a pivotal moment, with our growth exhibiting a true hockey stick trajectory. The new funds will help us elevate our platform and, in collaboration with our partner banks, leverage deposited funds to create a self-financing lending model,” Eersel said. 

“This model will allow deposited amounts to fuel a lending portfolio, fostering a sustainable and mutually beneficial financial ecosystem. Our customers can look forward to new financing products that will be seamlessly embedded into our platform, enhancing their overall experience,” he added. 

Majarra acquires NLP technology provider Lableb 

UAE-based Arabic digital content provider Majarra has acquired natural language processing technology provider Lableb for an undisclosed amount. 

Founded in 2004 by Abdulsalam Haykal, Majarra provides Arabic content through its app, offering a vast library of over 50,000 articles, videos, and audio content. 

Lableb, founded in 2017 by Kinda Al-Tarbouch, offers Arabic AI services and NLP. The acquisition aims to solidify Majarra’s position at the forefront of Arabic digital innovation and marks its entry into the rapidly expanding AI sector. 

“Joining Majarra marks an exciting new chapter for Lableb. Our shared vision of advancing Arabic AI and NLP will drive innovation and deliver significant value to online businesses and their customers. Lableb’s tools are robust, ready to deploy, and capable of handling millions of queries weekly,” Al-Tarbouch said. 


ADNOC Drilling eyes $1bn in investments, Gulf expansion plans

ADNOC Drilling eyes $1bn in investments, Gulf expansion plans
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ADNOC Drilling eyes $1bn in investments, Gulf expansion plans

ADNOC Drilling eyes $1bn in investments, Gulf expansion plans

RIYADH: UAE’s ADNOC Drilling is projecting significant growth, expecting over $1 billion in investments for 2025. The company also has plans to expand its operations into Oman and Kuwait, an official revealed.

In an interview with Arab News at the Capital Markets Forum, Youssef Salem, the company’s chief financial officer, discussed the expansion strategy, emphasizing the confidence ADNOC Drilling has in the long-term, robust plans of operating companies in these countries.

“For example, Kuwait Oil Co. is going to 4 million barrels of production capacity of oil per day, also launching for the first time their offshore operations. Similarly with Oman, a lot of tenders for new rigs to upgrade their drilling field,” he explained.

Salem shared that the firm’s expansion into these Gulf nations, along with its existing operations in Jordan, is based on establishing strong relationships with local operators. ADNOC Drilling has already pre-qualified with these entities and is focusing on organic growth through partnerships and joint ventures with established regional companies.

Regarding the financial impact of the investments, Salem noted that Kuwait is currently a large market with plans to expand to 200 rigs, while Oman is also growing its market to 100 rigs. “So, these two markets combined are almost three times the size of the UAE rig market, and hence, we see it as a very substantial opportunity,” he added.

Salem pointed out the ongoing shift in ADNOC Drilling’s revenue sources. “Today, if you look in general, the vast majority of our revenues come from the UAE. That is something that is evolving. For example, on the Enersol side, which is our global investment, we expect by next year to have around 7 percent of our net income to come from these global operations.”

The CFO elaborated on the company’s anticipated growth in 2025, with expectations of the onshore segment potentially crossing $2 billion, the offshore segment reaching over $1.4 billion, and oil field services surpassing $1.2 billion—an approximate 50 percent year-on-year growth.

“So, in 2025, we are expecting the onshore to potentially cross $2 billion, the offshore to cross $1.4 billion, and the oil field services to cross $1.2 billion, another almost 50 percent year-on-year growth,” Salem said.

He also revealed that the company plans to invest more than $1 billion in 2025.

“Out of that, $350 million to $550 million will be in additional rigs and oil field service equipment inside the UAE on our roadmap to reach 151 rigs by 2028,” he said.

Additionally, ADNOC Drilling is allocating $700 million to Enersol, its joint venture with Alpha Dubai, which focuses on investing in global energy technology companies, especially those involved in artificial intelligence.

Salem also highlighted the company’s recent acquisitions, noting that ADNOC Drilling completed four acquisitions worth $800 million in the previous year and plans further acquisitions totaling $700 million in 2025.

Discussing the company’s 2024 results, which reached a record revenue of $4 billion, Salem stated: “The onshore segment generated $1.9 billion of revenues from 95 land rigs, which is the largest drilling feed on the onshore side in the Middle East and North Africa. Similarly, the offshore segment generated $1.3 billion of revenue from 47 offshore rigs. Again, the largest, and then the oil field services, which is our fastest-growing segment, growing more than 100 percent year on year.” He also added that the oil field services segment generated $100 million in the fourth quarter and expects further growth in each segment in the upcoming year.

Regarding the forum’s agenda, Salem mentioned: “Tomorrow and the day after, we have two full days of investor meetings. Saudi investors obviously are a very key part of our shareholder register, but also, you have a lot of global investors who are flying into the forum to attend.”

He emphasized that the forum presents a valuable opportunity to engage with global investors.

Salem also spoke about ADNOC Drilling’s stock, saying it is the most covered in the UAE, with 18 analysts tracking it, and holds the highest number of buy recommendations in the Middle East, with 15 advisers endorsing it.

He acknowledged the increasing significance of Saudi Arabia’s financial sector, highlighting that the Kingdom hosts leading banks and noted that Tadawul is recognized for its liquidity and market activity, supported by a robust ecosystem of market makers, brokers, analysts, and investors.

“Similarly, on the Abu Dhabi exchange side in the UAE, one of the fastest growing exchanges across the trillion dollars of market capitalization between the Abu Dhabi exchange and the Dubai financial market,” Salem said, describing the event as the “biggest capital market in the world,” a collaborative gathering where regional exchanges unite.

On ADNOC Drilling’s operations in Saudi Arabia, Salem expressed the company’s deep commitment to its operations in the Kingdom. He explained that ADNOC Drilling operates multiple subsidiaries in close collaboration with Saudi Aramco, such as EV, a subsidiary from Enersol offering smart cameras for 3D visualization beneath wells. He also mentioned NTS, a manufacturing business with a significant facility in Dammam, employing over 100 people to manufacture drilling and service equipment for companies like Schlumberger, Halliburton, and Baker Hughes.

“For us, Saudi Arabia continues to be very strategic for our actual underlying operation, and we continue to find ways to build even deeper relationships,” Salem affirmed.

Regarding a potential dual listing on the Saudi Exchange, Salem shared that the company’s current focus is primarily on the Abu Dhabi Exchange, where they already enjoy significant liquidity, with over $20 million traded daily.

“We have the benefit of having a very liquid stock trading more than $20 million a day. Saudi investors are able to invest on the Abu Dhabi Exchange. We have a lot of the major Saudi sovereign wealth funds, pension funds, asset managers able to invest from here,” he said.

He added: “We do not see any technical limitation to their ability to invest, and we think we can continue to grow the Saudi investor base even more in ADNOC Drilling on the Abu Dhabi exchange.”


Derayah Financial surpasses market growth in Saudi brokerage, asset management, CEO says 

Derayah Financial surpasses market growth in Saudi brokerage, asset management, CEO says 
Updated 32 min 7 sec ago
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Derayah Financial surpasses market growth in Saudi brokerage, asset management, CEO says 

Derayah Financial surpasses market growth in Saudi brokerage, asset management, CEO says 

RIYADH: Saudi investment firm Derayah Financial saw its assets under management soar to SR17 billion ($4.53 billion) in 2024 as it outpaced growth across the sector in the Kingdom, according to its CEO.

Speaking to Arab News at the Capital Markets Forum 2025, Mohammad Al-Shammasi revealed that this rise to a 70 percent year-on-year growth, ranking the company among the top independent firms in Saudi brokerage revenues, with the third-largest market share. 

Saudi Arabia’s asset management industry was set for growth in the second half of 2024 and into 2025, with AUM increasing 13.5 percent year over year to exceed $250 billion by mid-2024, according to a Fitch Ratings report released in October.

The Kingdom has the largest asset management industry in the Gulf Cooperation Council, the fifth-largest in the Organisation of Islamic Cooperation, and the second-largest public Islamic funds market globally. 

“The overall size of the market is actually growing at a very decent growth rate. So, if you look at retail brokerage or digital brokerage, it is historically growing at a 9 percent CAGR year after year,” he said, adding: “On the asset management side, that has been growing at around 14 percent year after year.” 

Oversubscribed IPO 

Al-Shammasi also discussed Derayah’s recent initial public offering, which was 162 times oversubscribed, underscoring the firm’s strong market position. “This is a great testament to the company’s performance over the past few years,” he said. 

Founded 17 years ago as a digital challenger in capital markets, Derayah has grown into Saudi Arabia’s third-largest brokerage on of the the largest independent brokers in the region. 

The IPO allows shareholders to sell 20 percent of the company’s shares in a secondary transaction, with 90 percent allocated to corporates and institutions and 10 percent to retail investors. 

“We think this will give us huge credibility in the market,” Al-Shammasi said, adding that the transaction could also pave the way for more fintech companies to list on the Saudi stock exchange. 

The CEO emphasized the strong demand for Derayah’s IPO from investors across Asia, Europe, and the US. “We have seen investors from all over the world submitting bids for our IPO,” he noted. 

Al-Shammasi further assured that Derayah is well-funded for the near future, with a debt-free balance sheet and a track record of generous dividend distributions. “The company does not really need any capital in the near term to continue its strategy and growth plans,” he said. 

“We have a perfect environment to raise money here in the Kingdom, and I’m more than happy to tap the market if we need it,” Al-Shammasi added. 

The CEO also revealed that Derayah has partnered with Alpaca, a significant player in international brokerage, to cater to the growing local fintech sector. The partnership aims to provide fintechs in Saudi Arabia with a localized version of Alpaca’s services while facilitating international investors’ access to the Saudi market. 

“Alpaca operates a lot of brokerage houses, and we believe this partnership will pave the way for international investors to come and trade in the local market,” he explained. 

The Capital Markets Forum 2025, hosted by Saudi Tadawul Group, aims to bring together policymakers, business leaders, and industry experts to discuss trends shaping the Kingdom’s capital markets and position Saudi Arabia as a key player in the global financial ecosystem. 


Muqassa partners with FIS to enhance trade automation and expand clearing services 

Muqassa partners with FIS to enhance trade automation and expand clearing services 
Updated 18 February 2025
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Muqassa partners with FIS to enhance trade automation and expand clearing services 

Muqassa partners with FIS to enhance trade automation and expand clearing services 

RIYADH: Saudi clearinghouse Muqassa has announced a partnership with Fidelity Information Services Global to enhance trade automation for market participants. 

In an interview with Arab News during the Capital Markets Forum in Riyadh, Wael Al-Hazzani, Muqassa’s CEO, stated that the collaboration marks a significant step in expanding the firm’s services and improving operational efficiency within the Kingdom’s financial markets. 

“Today we announced our collaboration with FIS, one of the biggest technology providers, to facilitate automation for market participants,” said Al-Hazzani, adding: “This will be part of our solution, hopefully in the second half of this year.” 

The CEO emphasized that while FIS is the first provider, Muqassa intends to partner with additional technology firms. 

“FIS is a big player in this field, and international market participants use it heavily. We are complementing our offering to reach clients familiar with FIS, but this won’t be the last partnership — we will announce others soon,” he said.

 Muqassa, which plays a central role in clearing exchange-traded products and providing risk management, is also expanding its services to the over-the-counter market. 

“Currently, we clear repo transactions traded OTC (over-the-counter), and next in the pipeline are OTC interest rate derivatives,” Al-Hazzani said, adding: “We aim to launch this service in 2025, pending regulatory alignment and technology testing.” 

In addition to enhancing clearing services, Muqassa is advancing its role in the Kingdom’s fixed-income market. The company has increased the number of government sukuk eligible as collateral for clearing members. 

“Previously, only cash was accepted as collateral. Now, all government sukuk can be included in the collateral basket,” Al-Hazzani said.

“This provides relief to clearing members, allowing them to use part of their balance sheet sitting in sukuk instead of cash,” he continued.

Currently, up to 20 percent of a clearing member’s collateral pool can consist of government sukuk, but Muqassa plans to expand this as market liquidity improves. “As the market matures, we are interested in increasing the weight of acceptable sukuk for collateral,” Al-Hazzan added. 

Looking ahead, Muqassa is prepared to accept a broader range of securities as collateral, provided they meet liquidity requirements. 

“By rules and by technology, we are ready to accept any type of security as collateral,” Al-Hazzani said, going on to say: “The key prerequisite is liquidity— there must always be a buyer in the market in case liquidation is needed. As we grow, we will gradually expand the eligible basket of collateral to include equities, bonds, and stocks.” 

While Muqassa’s immediate focus remains on the Saudi market, it has long-term plans to expand regionally. 

“We are still a young company with many initiatives ahead, but our next step will be to explore markets in the GCC and beyond,” Al-Hazzani said.

Muqassa was established as part of Saudi Arabia’s Financial Sector Development Program to enhance market efficiency and attract global investors.

By centralizing counterparty risk management and aligning with global clearing standards, Muqassa aims to support the continued evolution of the Saudi financial market.


Saudi Exchange eyes 50 IPOs as market maturity grows, says top official 

Saudi Exchange eyes 50 IPOs as market maturity grows, says top official 
Updated 18 February 2025
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Saudi Exchange eyes 50 IPOs as market maturity grows, says top official 

Saudi Exchange eyes 50 IPOs as market maturity grows, says top official 

RIYADH: Saudi Arabia’s stock exchange has a robust pipeline of 50 initial public offerings, a sign of growing confidence in the Kingdom’s capital market, according to a top official. 

Lee Hodgkinson, group chief strategy officer at Saudi Tadawul Group, said the increasing number of private sector listings underscores the maturity of the country’s financial ecosystem. 

The assessment aligns with professional services firm EY, which expects Saudi Arabia to lead IPO activity in the Middle East and North Africa this year. 

“There are more than 50 prospective IPOs registered at the CMA (Capital Market Authority). That is a very healthy pipeline. I’m sure a pipeline that is envied by many of our exchange peers around the world,” Hodgkinson told Arab News on the sidelines of the Capital Markets Forum in Riyadh. 

“The conventional wisdom is almost all of that pipeline must be government-related companies. Actually no, it is the private entities that are coming to market, which I think is a sign of real maturity of the capital markets in the Kingdom,” he added. 

Capital market growth

Saudi Arabia’s capital market is on a steady growth trajectory, with strong momentum expected through 2030, Hodgkinson said. 

“The economic drive in the Kingdom, it’s really quite astonishing, particularly relevant to the rest of the world. So, it really is boom time, and it long might continue,” Hodgkinson noted. 

The executive highlighted the Kingdom’s debt market as a future area of success, driven by ongoing regulatory reforms. 

“If you look at CMA strategy, if you look at the financial services development plan and the whole ecosystem drive, I feel very confident that we’ll see a very powerful debt market really emerging in Saudi Arabia in the coming years,” he said. 

Tadawul Group is working toward establishing Saudi Arabia as a global financial hub bridging the East and the West. As part of this strategy, the exchange is expanding its investor base, particularly among qualified financial investors. 

“We’re looking to internationalize, institutionalize and electronify the business,” he said, adding that three years ago, around 8 to 9 percent of institutional electronic flow came from overseas, which he described as “not a particularly large number of QFIs.” 

Hodgkinson pointed out that today, that volume accounts for 25 percent of the market and noted that they now have over 4,000 QFIs. “The growth of international investors and eyeballs on the Saudi market has exploded,” he added. 

Commodities market expansion

Saudi Tadawul Group is also pushing into the commodities sector, particularly through its investment in the Gulf Mercantile Exchange, formerly the Dubai Mercantile Exchange. 

“The contracts at the moment are about Omani crude oil — it’s the third-largest physically delivered oil contract in the world, mainly attracting clients east of Suez, China and India. We would be driving growth in those products with our partners,” Hodgkinson said. 

Tadawul is also looking to expand into metals, mining, and agriculture — key industries in Saudi Arabia’s economic transformation under Vision 2030. 

“Real economy actors have a lot of risks — production risks, pricing risks, marketing risks. Commodity hedging to us can be very valuable,” Hodgkinson noted. 

He stressed the need for regional benchmarks in commodities pricing, particularly for metals and mining. 

“Saudi Arabia is becoming a very important player in the metals world. I think 20 percent of steel is being imported into Saudi Arabia for construction. And the issue for me is, why should those products be priced overseas?” 

“The South-South connectivity from markets like Brazil, China, and India with Saudi is growing. Why shouldn’t we have products that serve those markets rather than having to price everything in London or New York?” 

Strategic acquisitions

Tadawul Group has been expanding its regional footprint, including a 32.6 percent stake acquisition in GMEX and a 49 percent stake purchase in Direct Financial Network Co. through its subsidiary Tadawul Advanced Solutions Co. 

The GMEX deal makes Saudi Arabia the only G20 nation with a dedicated commodities exchange. “It was a very, very important strategic move for us,” Hodgkinson said. 

The DirectFN acquisition, meanwhile, enhances Tadawul’s technology capabilities and expands its fintech presence in Saudi Arabia and the broader Middle East and North Africa region. 

“It gives us a highly effective and cost-effective technology development center in Sri Lanka. It builds our presence in the Saudi market in the fintech arena. It starts to give us technology and client relationships in other countries in the MENA region,” he added. 


Saudi Exchange launches new system to streamline IPO process, says CEO

Saudi Exchange launches new system to streamline IPO process, says CEO
Updated 18 February 2025
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Saudi Exchange launches new system to streamline IPO process, says CEO

Saudi Exchange launches new system to streamline IPO process, says CEO

RIYADH: Saudi Arabia’s stock exchange has introduced a new Capital Management System to streamline the initial public offering process, lowering costs for companies, and broadening investor participation.

In an interview with Arab News at the Capital Markets Forum in Riyadh on Tuesday, Mohammed Al-Rumaih, CEO of Saudi Exchange, explained that the new system is set to transform the Kingdom’s capital markets by making IPOs faster, more affordable, and accessible to a wider range of investors.

“It’s a revolutionary system that will serve three main goals. One, make it quicker for companies to do their IPO, also cheaper for them and as well, open the opportunity for a bigger set of investors, so it used to be only for receiving banks usually for three,” Al-Rumaih said.

He further elaborated, saying: “Now we have 15 connected to our system, resulting in greater coverage, more investors, and quicker listings after book closing. This was a soft launch, but today we announced its expansion to all markets, including the main market.”

Regarding international investor participation in the Saudi market, Al-Rumaih dismissed concerns about significant barriers, pointing to the steady growth in foreign investment inflows.

“As of today, we don’t see major barriers. We can see from the numbers that we publish weekly that foreign investors have been growing on a weekly basis,” he noted.

Al-Rumaih also disclosed that foreign investors have been net buyers of Saudi stocks for the past three years, with foreign ownership surpassing SR400 billion and continuing to grow.

He emphasized that ongoing market infrastructure improvements, including enhancements for high-frequency trading, market makers, and regulatory reforms, are further strengthening foreign investor involvement.

“We see a lot of excitement. Today, we’ve met with many investors—some for the first time—while others are looking to double down on the Saudi market. Everyone is optimistic about its future, and we believe this year will continue the trend of foreign investors being net buyers of Saudi equities,” Al-Rumaih stated.

He also emphasized the Saudi Exchange’s efforts to strengthen the debt market, where foreign ownership remains relatively low.

“The debt market still has low ownership from foreign investors for many reasons. Most importantly, we have only had a few corporate issuances, but there is a strong and growing market for government sukuk,” Al-Rumaih said.

The Saudi Exchange is working toward inclusion in international sukuk indices, following a similar successful push for equity market inclusion.

“We believe we are on the right track based on the feedback we’ve received from investors. Hopefully, this year will be another successful year for Tadawul,” he said.

Discussing Saudi Arabia’s expanding role as a global financial hub, Al-Rumaih highlighted the Kingdom’s strong leadership and its commitment to Vision 2030 goals, which have already seen successes ahead of schedule in certain areas.

“Whoever invested in the Saudi market knows that we have great leadership with a great vision. They have been committed to the goals of Vision 2030, and we have reached some targets ahead of time, so we raised the bar,” he stated.

Al-Rumaih also pointed out that Saudi Arabia ranked first globally in IPO listings in 2023, surpassing all other markets. Foreign investment activity surged by 80 percent last year, with further growth expected as more market makers, HFTs, and IPOs enter the scene.

“We believe this year will see even greater foreign investment inflows as we continue to introduce more market enhancements,” Al-Rumaih said.

Saudi Exchange is also actively working to expand cross-border partnerships, signing agreements with foreign exchanges and facilitating the listing of more exchange-traded funds.

Following the interview, Saudi Exchange announced the signing of a memorandum of understanding with Jakarta Futures Exchange, aimed at encouraging large Indonesian firms to explore opportunities within the Kingdom’s capital market.

“We are working even more and connecting with international markets. You would see more ETFs and more agreements. We are signing an agreement just after this meeting with another exchange in a country that looks at Saudi as a great investment destination,” Al-Rumaih said.

He further emphasized: “You will see more ETFs and more agreements. We are signing an agreement right after this meeting with another exchange in a country that sees Saudi Arabia as a great investment destination,” Al-Rumaih revealed.

Additionally, Saudi regulators have updated listing requirements to unlock the full potential of the debt market, making it easier for companies to raise funds through bond issuances.

“Every company needs liquidity and long-term financing. What we have done is shorten the time, reduce the requirements, and make it more attractive,” he explained.

The Kingdom is on track to achieve a record number of debt issuances in 2024, with the total percentage of debt market activity expected to grow significantly.

“We are currently at 18 percent debt market penetration, including both government and private sector issuances. This is far below the G20 average of over 80 percent, which means there is a lot of room to grow,” Al-Rumaih concluded.