Argaam releases periodic report on IR in Saudi financial market; 5% growth seen in spending on IR departments

Argaam, a leader in financial and economic news, has issued a report on the state of Investor Relations (IR) in Saudi Arabia and its evolution as a strategic tool supporting the investment ecosystem in the Kingdom.

The report revealed that more than a quarter of respondents surveyed plan to raise spending on IR by up to 5%. It also highlighted the various allocations made for IR departments in listed companies, ranging between SAR 1 million and SAR 9 million.

The report, which is a result of collaboration between Argaam and the Middle East Investor Relations Association (MEIRA) - Saudi Arabia, revealed that the maximum salary for a General Manager of Investor Relations reaches approximately SAR 50,000. Salaries vary based on the organizational level within the department, with some companies appointing a single employee, while others employ up to 10 staff members.

Mustafa Alsaleh, Communications & PR Manager at Argaam, stated that the primary goal of the study is to support IR departments in listed companies by providing a clear vision for fulfilling their assigned tasks.

The study uncovered that one of the biggest challenges faced by these departments last year was the scarcity of qualified employees to work in those departments, which is the most significant obstacle to IR departments to play their full role. The situation gets even worse with lower salaries and lack of specialized training.

Meanwhile, Rayan Al-Karawi, Founder of MEIRA Saudi Chapter, said that this study unveiled the importance of the IR departments focus on building strong relationships with investors and analysts to back their companies.

He further stressed the need for the senior management in companies to interact with the IR department, greatly activating their role. Al-Karawi also highlighted the necessity of their independence and direct connection with the CEO, which would enhance the board of directors’ understanding of the sensitive role of the IR department.