RIYADH: Public debt issuers in Saudi Arabia may now anticipate speedier regulatory inspections provided their securities have a credit rating, as the Kingdom seeks to increase issuance and broaden its fixed-income investor base. The Capital Markets Authority has implemented a fast-track method for public debt offering applications evaluated by the regulator’s certified agencies. The incentive will be in force until the end of 2026, according to a press statement.
By encouraging issuers to obtain credit ratings, the CMA hopes to increase investor participation and improve risk assessment across the market. The move coincides with Saudi Arabia’s continued attempts to build a more diverse and robust financial system under Vision 2030. Strengthening the domestic capital market, particularly fixed income, is a strategic objective for the Kingdom as it strives to lessen reliance on oil revenues, channel more private capital into economic development, and empower the private sector to drive growth.
“Through this measure, the CMA aims to build a more mature and stable debt instruments market with a diversified investor base and strengthened confidence among all participants,” according to a statement. “A credit rating is not merely an indicator of the issuer’s creditworthiness; rather, it serves as an effective tool enabling investors to make well-informed investment decisions,” it states. While Saudi Arabia’s equities market has expanded rapidly in recent years, the debt market remains relatively immature when compared to global rivals.
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