The Kingdom of Saudi Arabia continued its progress in the competitiveness indicators related to the financial markets, achieving the third position among the most competitive countries on the Group of Twenty (G20) nations’ level, according to the IMD World Competitiveness Yearbook for 2023.
The Kingdom advanced seven ranks compared to its standing in 2022.
The Kingdom ranked first in the Corporate Boards index among G20 nations and second in the capital markets index, stock market capitalization index (as a percentage of gross domestic product), shareholders' rights index, and venture capital index.
The Kingdom also ranked third in the stock market index and fifth in the index evaluating the ability of stock markets to provide adequate financing to companies.
Further, the Kingdom ranked third globally in the stock market capitalization index (as a percentage of GDP), advancing over other countries like Japan, India, Germany, the United Kingdom, China, and the United States of America.
The Kingdom ranked third in the venture capital index, exceeding countries like India, the United Kingdom, Germany, Japan, and China.
As for the stock market index (% change on the index), the Kingdom ranked fifth, advancing over countries like India, the United States of America, Japan, China, Germany, and the United Kingdom.
On the Arab countries' level, the rank of the Kingdom showed upward strides this year in six indicators while maintaining its positions in two others. At the same time, the Kingdom achieved first place in nine of the 12 indices among Arab countries participating in the report and ranked second in one index while ranked third and fourth, respectively, in the remaining indices.
The Kingdom’s progress in the said indices and advancing stands exemplify the Capital Market Authority’s (CMA's) continued efforts and steps during the previous period to improve and develop the capital market sector by implementing relevant global best practices.
Among the said efforts and steps were the CMA Board’s approval of the Securities Exchanges and Depository Centers Regulations, Capital Market Institutions Regulations, and the Instructions for Shariah Governance in Capital Market Institutions.
The CMA Board also reviewed the Implementing Regulations of the Companies Law for Listed Joint Stock Companies to promote the regulatory environment of the companies, facilitate the legal procedures and requirements to instigate the business environment and support investment, achieve a balance between stakeholders, and provide an efficient and fair framework for corporate governance, in addition to participating in economic entities’ sustainability.