Saudi Arabia Remains a Magnet for Global Investors Despite the Middle East's Turbulences

JAKARTA - Saudi Arabia is considered to remain attractive for global investors, even though the Gulf and Middle East regions are still overshadowed by uncertainty. The key is in reforming regulations, deepening the capital market, and long-term economic direction.

Launching an Arab News report, Saturday, June 13, the view emerged at HSBC's GCC Exchanges Conference in London. A number of Saudi financial sector executives said investors remained because they judged the country's economic policies to be quite clear.

Saudi Arabia in recent years has expanded the capital market through the Vision 2030 agenda. This program is a big map of Saudi economic transformation to reduce dependence on oil and increase the role of investment.

Saudi's inclusion in a number of major global indices has also attracted billions of dollars in passive funds. Passive funds are investments that follow a specific index, not actively managed every day. On the other hand, the Saudi Exchange continues to add products and expand market access.

In May, HSBC was appointed as an International Primary Dealer by the Saudi Arabian Ministry of Finance and the National Debt Management Center. This means that HSBC can be a mediator for foreign investors who want to enter Saudi government debt instruments.

CEO and board member of HSBC Saudi Arabia, Faris Al-Ghannam, said the consistent regulatory framework and the development of the debt and stock markets in Saudi Arabia in the past decade have strengthened the confidence of global investors.

"Through firm policymaking, large state wealth reserves, and long-term infrastructure project channels, companies and investors remain on track," said Al-Ghannam.

CEO of Saudi Exchange, Mohammed Al-Rumaih, said Saudi is now an important destination for international investors seeking exposure to major economic transformations.

According to Mohammed Al-Rumaih, the growing issuer base, better market access, and product and service innovation open up wider opportunities for investors to participate in Saudi's long-term growth.

According to a press release quoted by Arab News, the four-day conference brought together more than 300 investors, more than 100 companies, and representatives from seven Gulf stock exchanges. More than 3,000 meetings were recorded, making it the largest agenda in the five years of holding the conference.

Al-Rumaih said the strong interest in this year's conference shows Saudi Arabia's increasingly prominent position in the global capital market.

Discussions also touched on the growth opportunities based on artificial intelligence (AI). In the forum, Saudi Arabia is projected to record the highest data center-related revenue growth among the Gulf Cooperation Council countries, with an annual compound growth rate of around 49 percent in 2025-2030.