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More than 300 global institutional investors met with all seven bourses from the GCC and over 100 GCC corporates at HSBC’s GCC Exchanges Conference in London last week. The event comes as global economic uncertainty reshapes capital flows, with global investors exploring new opportunities in the Gulf for long-term, reform-driven growth, and maturing capital markets.
Now in its fourth year, the conference focused on the region’s resilience. Ƶ was a main feature of the first two days of the conference, where guest speakers included Minister of Investment of Ƶ Khalid bin Abdulaziz Al-Falih, and Deputy Market Institutions at Ƶ’s Capital Market Authority Raed Alrashed Alhumaid.
Having registered a 3.4 percent year-on-year increase in GDP in Q1, Ƶ’s non-oil growth is tracking ahead of already strong initial estimates. Discussions focused on plans for the Kingdom’s services and non-oil manufacturing sectors, as well as efforts to continue liberalizing financial market infrastructure.
Faris AlGhannam, chief executive and board member, HSBC Ƶ, said: “The resilient activity in Ƶ’s private and public markets, as well as the breadth of sectors coming to market, is a reflection of investors’ confidence in the Kingdom’s long-term potential despite testing markets.”
Mohammed Al-Rumaih, chief executive, Saudi Exchange, said: “The global investor appetite for the Saudi capital market continues to deepen, driven by the Kingdom’s ongoing economic transformation. At the Saudi Exchange, we remain committed to enabling access, enhancing market infrastructure, and fostering transparency to support diversified capital formation across sectors. The strong engagement witnessed this year at the GCC Exchanges Conference further reflects the growing international confidence in the Saudi market and its central role in the Kingdom’s national transformation roadmap.”
Although domestic market liquidity and oil-dependency have been traditional constraints for equity investors, HSBC analysts predict that the combination of IPOs and secondary listings from the Kingdom as well as the removal of foreign ownership limits could lift Ƶ’s weight in emerging market benchmarks.
Ƶ led listing activity in the region during the first quarter, despite a slowdown in issuances globally, with 12 IPOs across sectors such as real estate, healthcare, financial services, and retail.
AlGhannam added: “Global investors are recalibrating for resilience and the GCC’s balance sheet strength and sophisticated financial markets ecosystem make it a capital magnet.”
This year, for the first time, HSBC brought together emerging markets macro strategists with GCC attendees, as EM investors dial up their exposure to the Gulf’s capital markets driven by strong GDP projections relative to the broader EM pool.