Saudi regulator eases approval process for rated debt issues
The Capital Market Authority has introduced a fast-track mechanism for public debt offering applications that agencies licensed by the regulator have rated. The incentive will remain in effect through the end of 2026, according to a press release.
By encouraging issuers to obtain credit ratings, the CMA aims to increase investor participation and improve risk assessment across the market.
The move comes amid Saudi Arabia's ongoing efforts to develop a more diversified and resilient financial system under Vision 2030.
Strengthening the domestic capital market, particularly fixed income, is a strategic priority for the Kingdom as it seeks to reduce dependence on oil revenues, channel more private capital into economic development, and empower the private sector as a driver of 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,' the statement said.
'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 added.
While Saudi Arabia's equity market has seen strong growth in recent years, the debt segment remains relatively underdeveloped compared to global peers. Enhancing transparency and risk differentiation through credit ratings is viewed as key to unlocking greater institutional and foreign investor participation, which in turn supports more competitive pricing and long-term market stability.
The CMA has already implemented a series of structural reforms to mature the market, including expanding the qualified investor base, enabling foreign ownership of debt securities, and promoting the issuance of sukuk and conventional bonds.
These reforms are designed to improve capital access for issuers while giving investors better tools to assess risk and return. The latest measure builds on these initiatives by directly linking faster regulatory review to the presence of a third-party credit opinion.
The regulator expects the move to stimulate a higher volume of rated debt issuances, accelerate application processing, and strengthen market confidence, ultimately fostering a more dynamic and diversified capital market ecosystem.
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