Saudi Arabia aims to convert bank debt into tradable securities: Al-Falih

18/02/2025 Argaam
Minister of Investment Khalid Al-Falih

Minister of Investment Khalid Al-Falih


Minister of Investment Khalid Al-Falih said Saudi Arabia plans to transform some bank debts into tradable and recyclable securities in the coming years.

 

Speaking at the 2025 Capital Markets Forum, Al-Falih highlighted the Kingdom’s growing investment influence in the global markets, linking Eastern and Western investors, with significant capital inflows from Asia.

 

He also indicated that the insurance sector currently contributes 2% of Saudi Arabia's GDP, with a target of 8%, emphasizing growth opportunities in specialized, property, and life insurance.

 

The minister further pointed out that a large portion of insurance premiums will be reinvested in the Saudi market, creating new opportunities for investors.

 

Saudi Arabia seeks to become a global hub for business and finance, with its financial services sector evolving to match the country's economic diversification goals.

 

The local debt markets still represent only 4% of GDP, compared to 40% in G20 nations, signaling significant growth potential.

 

Major investments in tourism, transportation, and logistics positively affected Saudi capital markets, with sectors that barely existed before Vision 2030 now experiencing rapid annual growth, despite global economic challenges.

 

Further, Al-Falih highlighted green investment as a key priority, underscoring the Kingdom's strong transition from oil dependence to a fully diversified economy, covering renewable energy, green tech, and advanced technology sectors, which continue to attract global investors.

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