Bloomberg executive highlights key trends shaping Saudi Arabia’s capital markets

Speaking to Constantin Cotzias, European Director at Bloomberg LP, at the sidelines of the Capital Markets Forum in Riyadh 2025 to explore the key investment trends driving Saudi Arabia’s capital markets, Cotzias discusses the Kingdom’s efforts to enhance market liquidity, the role of technology in financial sector transformation, and the growing collaboration between Saudi Arabia and the UK. He also highlights the disruptive forces shaping the future of the region’s capital markets and the opportunities ahead for investors.

What current investment trends in Saudi Arabia support Vision 2030?

Saudi Arabia’s Vision 2030 is driving its transformation into a global investment hub, supported by a favourable investment environment and strategic economic reforms. The Kingdom is also emerging as one of the largest debt issuers among emerging markets. According to the National Debt Management Center, Saudi Arabia issued a $12 billion triple-tranche bond under its Global Medium-Term Note Issuance Program, drawing strong investor demand with a $37 billion order book. The NDMC emphasized that the transaction aligns with its strategy to diversify the Kingdom’s investor base and optimize access to international debt capital markets.

At the Capital Markets Forum in Riyadh last month, the Saudi Tadawul Group told Bloomberg News it is pursuing mergers and acquisitions to further develop the local capital market and attract foreign investors. IPOs remain a key driver of growth, with the 2024 EY MENA IPO Eye report projecting 38 company listings and 22 fund listings in 2025, led by Saudi Arabia with 27 potential IPOs. This surge in listings underscores strong investor confidence and reinforces the Kingdom’s position as a regional financial hub.

Debt capital markets will play a critical role in financing both public and private sector projects. However, to deepen liquidity—particularly in the local currency debt market—Saudi Arabia must continue strengthening its market infrastructure to attract international investors. Global capital inflows will be essential for sustaining long-term growth and realizing Vision 2030’s ambitions.

How are the latest technological advancements shaping the future of Saudi Arabia’s capital markets?

Technology is reshaping Saudi Arabia’s capital markets, enhancing efficiency, transparency, and global competitiveness. The rapid growth of the fintech sector, supported by initiatives like Fintech Saudi, has fostered innovation and created a thriving ecosystem for startups. This has led to the expansion of digital payment solutions, peer-to-peer lending, and crowdfunding platforms, with the latter doubling annually over the past three years and surpassing SR3 billion ($800 million) in capital last year.

Advanced technologies such as artificial intelligence and blockchain are further strengthening market infrastructure. The government’s commitment to AI is underscored by a $40 billion investment fund, reinforcing Saudi Arabia’s ambition to become a global AI hub beyond the U.S. Meanwhile, the Saudi Central Bank’s Open Banking Policy is driving financial sector modernization by enabling secure data sharing between banks and fintech companies, paving the way for more customer-centric solutions and industry-wide collaboration.

These advancements are streamlining trading and investment while aligning the Kingdom’s markets with international standards. As digital transformation accelerates, Saudi Arabia is positioning itself as an increasingly attractive destination for investors.

How is the Global Capital Markets Forum in Riyadh 2025 contributing to the growth and development of Saudi Arabia’s capital markets?

The Capital Markets Forum in Riyadh serves as an important platform that convenes the key players in the world’s global capital markets, bringing them together to listen, learn, and collaborate. Organized by the Saudi Tadawul Group, the forum aims to drive sustainable growth, innovation, and financial stability.

One of its main objectives is to enhance the interconnectedness of capital markets, fostering discussions on sustainable finance, emerging technologies, and policy reforms. The event also provides vast opportunities for key stakeholders to unlock cross-border investment potential, ensuring that Saudi Arabia’s capital markets remain dynamic and adaptable to a changing global economy.

Given you are based in the UK, how can Saudi Arabia and the UK exchange insights to strengthen and expand their capital markets?

The UK and Saudi Arabia have a strong foundation for financial collaboration, with significant opportunities to exchange insights that benefit both markets. The UK’s capital markets are globally recognized for their governance, transparency, and ability to provide financing for publicly traded companies. This experience can support Saudi Arabia’s efforts to enhance its financial ecosystem, attract more international investment, and further develop its regulatory framework.

At the same time, Saudi Arabia’s rapid capital market growth offers valuable lessons for the UK. As the UK moves forward with its own capital market reforms, there is much to learn from Saudi Arabia’s success in deepening liquidity, increasing IPO activity, and positioning itself as a key financial hub in the region. A key area of potential collaboration is dual listings. Baroness Gustafsson of Chesterton OBE, Minister for Investment of the UK, highlighted the mutual benefits of UK firms considering dual listings on both the London and Riyadh stock exchanges at the event in Riyadh last month. Such arrangements could provide UK companies with access to Saudi capital and investors, while offering Saudi investors diversified opportunities. Baroness Gustafsson also emphasized the importance of articulating to UK businesses about the advantages of entering Saudi Arabia’s commercial and trading markets through dual listings. 

The City of London, with its expertise in debt financing and global infrastructure funding, can also play a crucial role in addressing Saudi Arabia’s investment gap. By leveraging this knowledge, the two countries can collaborate on initiatives that drive economic growth and social advancement. 

Stronger partnerships, knowledge sharing, and joint initiatives will be essential in strengthening and expanding capital markets in both Saudi Arabia and the UK.

What are some of the disruptive forces that will impact Saudi capital markets in 2025?

Saudi Arabia’s capital markets, like others around the world, will be shaped by several key global and regional forces in 2025. One of the biggest factors will be geopolitical and economic shifts, which can influence investor sentiment, market stability, and cross-border capital flows. Saudi Arabia’s ability to adapt to these changes will be crucial in maintaining market confidence and attracting foreign investment.

Technology and platform modernization will also play a major role. The rapid advancements in AI, digital transformation, and automated trading platforms are reshaping how markets operate. Embracing these innovations will be key to enhancing efficiency, transparency, and accessibility. Data-driven decision-making is becoming more critical than ever, and financial institutions are increasingly relying on advanced analytics and real-time market intelligence to navigate volatility. Bloomberg’s financial data, analytics, and trading platforms are widely used by global capital markets, helping investors and financial professionals in Saudi Arabia and beyond make informed decisions in this rapidly evolving landscape.

Cross-border interoperability will also be critical for ensuring seamless financial transactions. Strengthening data flow between trading platforms, banking systems, and risk management tools will enhance efficiency and facilitate international investment. 

As Saudi Arabia continues integrating with global financial markets, access to reliable, real-time financial information and the ability to connect with international capital flows will be key to long-term success.