Will TASI hit fourth spot in list of world’s largest stock exchanges by 2030?

According to the World Federation of Exchanges, by the end of 2023 the Saudi main exchange, Tadawul All Share Index, was ranked 11th among the world’s largest exchanges. The positioning placed Tadawul just below the Canadian TMX Group in 10th place and the London Stock Exchange in ninth. As of the end of last month, TASI has moved up to the eighth position.

At the close of 2023, TASI recorded a value of 11,967.39 points, marking a notable increase from the previous year’s 10,478.46 points, representing a gain of 1,488.93 points or 14.21 percent. The highest closing level for TASI in 2023 was 11,967.39 points, as of Dec. 31. The total market capitalization at the conclusion of 2023 reached SR11,259.32 billion ($3,002.49 billion), reflecting a 13.98 percent increase compared to the previous year’s end. The total value of shares traded in 2023 amounted to $355.50 billion, showing a decrease of 21.95 percent compared to the previous year’s figure of $455.48 billion.

In my opinion, reaching the world’s fourth place is challenging but achievable by 2030. Considering that market capitalization can fluctuate due to various economic factors, investor sentiment, and company performance, TASI may secure fourth place if it surpasses the market value of the Japanese exchange with a total market value of $6.2 trillion. This is nearly double TASI’s current market cap and four times the number of listed companies.

Given the Kingdom’s track record of achieving challenging targets with the motto ‘If there’s a will, there’s a way,’ such as hosting the World Cup and the World Expo, becoming the world’s fourth-largest stock exchange is not far-fetched.

With six years remaining until 2030, to achieve the fourth place we must rapidly develop the sovereign wealth fund-owned giga-projects, including Red Sea Global, Diriyah Gate Development Authority, Qiddiya, and numerous sizable privately owned companies for listing. Given the Kingdom’s track record of achieving challenging targets with the motto “If there’s a will, there’s a way,” such as hosting the World Cup and the World Expo, becoming the world’s fourth-largest stock exchange is not far-fetched.

It is worth noting that in about two weeks, top financial minds and decision-makers will gather in Riyadh for the third Saudi Capital Market Forum on Feb. 19, with the theme “Power Growth,” to discuss market evolution, investment strategies, and regulatory developments.

The forum, which boasts BMG Financial Group as a gold sponsor, will feature keynote speakers, including the Finance Minister and the Financial Sector Development Program Chairman Mohammed Al-Jadaan, Capital Market Authority Chairman Mohammed El-Kuwaiz, Saudi Tadawul Group Chairwoman Sarah Al Suhaimi, and Saudi Tadawul Group CEO Khalid Al-Hussan.

Basil M.K. Al-Ghalayini is the chairman and CEO of BMG Financial Group.