The reforms are expected to increase market accessibility Image Credit: Reuters

Dubai: Saudi Arabia’s capital markets authority (CMA) proposes reforms aimed at facilitating easier access to the country’s debt market for development funds, banks, and sovereign wealth organisations.

These reforms, currently seeking public feedback, intend to streamline regulations governing the issuance of financial instruments, thereby boosting market accessibility, and stimulating growth.

The changes are expected to accelerate financing for companies through instruments like sukuk or Sharia compliant bonds, while reducing issuance costs and encouraging more offerings. This initiative aims to position the Saudi debt market as a pivotal avenue for financing both corporate entities and broader economic initiatives.

These reforms are part of Saudi Arabia’s broader strategy under Vision 2030 to bolster its financial sector, attracting private and foreign institutional investors to fund key projects.

The Saudi Vision 2030 is a programme launched by the government in 2016, with the main aim of diversifying its economy away from the oil sector. It has three main pillars - a vibrant society, a thriving economy, and an ambitious nation.

The proposed amendments aim to allow financial institutions in Saudi Arabia to issue debt instruments under specified exemptions, thereby broadening the range of issuers and types of instruments available. Additionally, the reforms seek to streamline the notification process for private offerings, aiming to expedite these transactions.

The CMA has invited stakeholders and investors to participate in the public consultation on these amendments, underscoring its commitment to carefully consider and study feedback during the consultation period ending on August 8, according to the Saudi Press Agency.