2018 Q3 Report En · Table (p.7)

0	1
Financial Sector Development Highlights
Saudi Government Debt to be Included in JP Morgan	IMF Executive Board Completes 2018 Article IV
Emerging Markets Indices	Consultation with Kingdom of Saudi Arabia
	On July 16, 2018, the Executive Board of the International
JP Morgan announced its plan to include Saudi government debt
	Monetary Fund (IMF) concluded the Article IV Consultation with
in its emerging market sovereign government bond indices in
	Saudi Arabia. Executive Directors commended the authorities
2019. Saudi issuances will have a weight of 3.1% in the index.
	for the progress made in implementing their reform agenda.
The inclusion will increase liquidity for the debt issued by
	Directors welcomed the broadly positive outlook and agreed
government and government-owned companies, and strengthen
	that continued commitment to implementing wide‑ranging
investor base. The development is in accordance with strategic
	reforms will help achieve the fiscal objectives.
initiatives of the Ministry of Finance's Debt Management Office
(DMO) to ensure Saudi Arabia’s continued access to global debt	SAMA Provides an Update to the Unified Policy for the
markets. The inclusion is a major step toward strengthening	Mandatory Vehicle Insurance
Saudi Arabia’s position in global debt markets and deepening the
	SAMA announced an update to the unified policy for compulsory
debt capital market, a major initative of the Financial Sector
	vehicle insurance. One of the key amendments to the policy is
Development Program
	that it now covers drivers aged 18 years and above and holding a
DMO of the Ministry of Finance Launches Primary Dealers	driver’s license.
Program
	Saudi Arabia’s Rank in Global Competitiveness Report 2018
The DMO conducted the Primary Dealers Program for sukuk	Improves to 39
distribution on July 22, 2018, under the Saudi Arabian
	In the Global Competitiveness Report 2018, published by the
Government SAR-denominated Sukuk Program as part of the
	World Economic Forum, Saudi Arabia’s rank in terms of global
Financial Sector Development Program initative to deepen the
	competitiveness has increased to 39 out of 140 countries in 2018
debt capital market. This enabled various asset managers and
	from 41 among 135 countries in 2017. Saudi Arabia’s score in
more than 20 investors from financial institutions to submit bids
	2018 has increased in nine out of 12 index components. These
for their proprietary books and on behalf of their customers.
	components are Institutions, Infrastructure, Information and
Primary dealers would be required to expand the investor base in
	Communication Technology adoption, Health, Skills, Labour
their capacity in the primary market, play a central role in market-
	Market, Financial System, Business dynamism and Innovation
making, and provide two-way pricing for issuances under the
	capability. With respect to the component of Macroeconomic
Saudi Arabian Government SAR-denominated Sukuk Program in
	Stability, Saudi Arabia has scored the best possible score of 100
the secondary market. Market-making would aid in stimulating
	out of 100. The report notes that the implementation of reforms
financial markets, and increase liquidity in the secondary market.
	envisaged in Vision 2030 will increase private sector dynamism
Capital Market Authority (CMA) Grants Initial Licenses in	and innovation capability.
Financial Technology
CMA approved first two trial financial technology licenses to
Scooper and Manafa Capital. The trial licenses will enable the two
companies to offer crowd funding service in Saudi Arabia. These
licenses are part of “Open financial services to new types of
players” initiative which is one of the initiatives under the
Financial Sector Development Program.

Source

2018-q3-report-en.pdf

Domain

pdfs

Type

pdf

Method

camelot_stream

Dimensions

62 × 2

Page

7