Saudi Arabia ABS Market Outlook

the demand for assets backed securities (abs) in saudi arabia has been increasing steadily, influenced by growing economic activity in the region and strong government support for the development of the abs market. concerned about abating oil prices, the government of saudi arabia has taken steps in recent years to diversify and liberalize its economy, in accordance with saudi arabia’s vision 2030. an essential part of this strategy involves the capital markets, which have sought to reduce reliance on oil revenue by facilitating strong and innovative instruments such as the abs. the regulatory framework for abs has been liberalized and improved in order to make it easier forthepublic and private sectors to raise finance by issuing securities. to support this effort, the saudi arabian monetary authority (sama) has issued comprehensive regulations governing the issuance, offering and trading of abs in saudi arabia. the introduction of abs has enabled more efficient allocation of capital to key projects and investments which are a priority for the country, while also being locally supported and designed to meet the needs of retail and institutional investors. furthermore, the flexibility and liquidity of abs have increased the appeal for investors which are further encouraged by improved investor protection measures. abs are projected to remain in strong demand in saudi arabia, as the country intensifies its efforts to diversify and expand its economy. the saudi government’s foresight in allowing for flexible abs issuance and trading platforms, combined with improved investor protection and liquidity, makes the abs market in saudi arabia a viable and attractive option for investors. this demand, combined with the introduction of a reliable and compliant regulatory framework, is expected to boost abs offerings in the region and has the potential to launch saudi arabia’s asset-backed securities market into the international spotlight.