Saudi Arabia has taken a significant step towards broadening its debt market accessibility by incorporating five additional financial institutions into its primary dealer program. The Ministry of Finance and the National Debt Management Center (NDMC) formalized agreements with Albilad Investment Co. , AlJazira Capital Co. , Al Rajhi Capital Co. , Derayah Financial Co. , and Saudi Fransi Capital Co. to facilitate the distribution of government debt instruments.
These newly appointed institutions will join a group of established local and international financial entities already participating in the primary dealers program. The expansion of this program is seen as a strategic move to enhance market liquidity, attract a wider investor base, and bolster the overall growth of the Saudi debt market.
By increasing the number of primary dealers, Saudi Arabia aims to create a more robust and efficient platform for government debt issuance. This development is expected to stimulate investor interest and confidence in the Kingdom's debt market, ultimately contributing to its long-term financial stability and economic growth.