The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Saudi Arabia: ...and establish debt capital market

As well as the expected regulations covering non-bank financial intermediaries, Nahed Taher, adviser to the CMA, says that the authority will soon issue debt capital market regulations, and the market itself should be up and running within months. Like the other facets of the capital markets law, this has taken some time to put into effect: the CMA announced last July that it was discussing "rules, directives and procedures relevant to the capital market as prescribed by the capital market law," and that "work is in progress to develop the primary market". Taher considers a primary debt market to be "essential for financing mega-projects in the coming period, as a tool of long-term lending." The financing requirements of such projects, which are mainly in the petrochemicals sector and infrastructure, are estimated to be about $600 billion by 2020 and "have to start immediately". She says the market's main focus will be sukuk (Shariah-compliant asset-backed securities), and predicts that the finance ministry or state corporations such as Sabic will be the first to issue bonds, issuing long-term paper (with 20 to 30 years' maturity) in order to establish a benchmark. The private sector should then follow.

Although all this is positive news for market liberalization, there appears to be little prospect that foreigners will be able to invest directly in the Saudi market in the near future.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree