Saudi Arabia’s capital market firms see 27% rise in operating income
Investment activities account for 30 per cent of the income with $322m
Dubai: Saudi Arabia’s capital market institutions reported a 27 per cent increase in operating income, reaching $1.1 billion (Dh4 billion), in the second quarter of this year.
Operating income measures the amount of profit after deducting operating expenses such as wages, depreciation, and cost of goods sold.
According to country’s capital market authority (CMA), asset management emerged as the top performer, contributing 31 per cent of the total revenue, a 22 per cent increase compared to the same period last year.
Investment activities followed closely, accounting for 30 per cent of the income with $322 million (Dh1.1 billion). However, this marked a 15 per cent decrease from the previous year.
Despite these gains, the overall net profit, reflecting earnings after expenses, zakat, and taxes, fell by 3 per cent to $532 million (Dh1.9 billion) from $567 million (Dh2 billion) in the same quarter last year, primarily due to a rise in non-operating expenses.
An international financial report highlights that the Saudi stock exchange (Tadawul) has rapidly evolved into the world’s 10th-largest by market capitalisation, largely due to reforms by the CMA, aligning with Vision 2030’s economic diversification goals.
Saudi Vision 2030 is a government programme launched in 2016 with the main aim of diversifying the economy away from oil.
The report notes that increased foreign investment has played a crucial role in supporting these reforms, with the capital markets remaining resilient despite global economic uncertainties, including high inflation and geopolitical tensions.