Al-Falih: Debt instrument offerings in 2026 to deepen the financial market
Saudi Investment Minister Khalid Al-Falih revealed the outlines of a new and pivotal phase in the history of the Saudi financial market, announcing that the Kingdom anticipates very important debt instrument offerings during 2026. Al-Falih confirmed that this strategic move is being worked on with high-level coordination between several key governmental and regulatory bodies, including the Saudi Stock Exchange (Tadawul), the Capital Market Authority, and the Ministries of Investment, Finance, Economy and Planning.
Speaking to Al-Sharq TV, Al-Falih explained that these anticipated offerings not only aim to increase market size but also seek to bring about a qualitative shift in the investor structure by attracting new categories with significant global financial influence, such as international pension funds and major investment funds. This step is intended to enhance the depth of the financial market and diversify the investor base, thereby reducing market volatility and increasing its stability and attractiveness to long-term capital.
These moves come within the framework of the Financial Sector Development Program, a key pillar of the Kingdom's Vision 2030, which aims to build an advanced and globally integrated financial market. Developing the debt instruments market (sukuk and bonds) is a crucial step towards financial system integration, providing alternative financing channels for both the public and private sectors and contributing to the funding of the Kingdom's mega-projects, thus strengthening Saudi Arabia's position as a regional and international financial center.
Regarding individual investors, the Minister of Investment pointed to imminent regulatory developments that will fundamentally change individuals' financial behavior, allowing them to open direct investment and current accounts. This step aims to enable citizens and residents to transfer their savings from traditional, static accounts to direct investment channels in the financial market, thereby promoting a culture of investment savings and increasing individual participation in economic development.
Al-Falih explained that the targeted investment flows will extend beyond traditional models, encompassing a wide range of financial assets such as private equity, private lending, venture capital, and syndicated loans. This trend runs parallel to the continued pace of initial public offerings (IPOs) of shares, sukuk, and bonds, creating a comprehensive investment environment that caters to the needs of diverse investor segments.
These statements coincide with the Capital Market Authority's recent announcement that the Saudi stock market will be open to all categories of foreign investors, enabling them to invest directly without complex restrictions starting February 1st. This decision is historic, as it removes barriers to foreign capital inflows and reflects regulators' confidence in the strength of the Saudi economy and its ability to absorb global investments, paving the way for the inclusion of more Saudi companies in global indices with greater weighting.
