• Saudi Arabia's Capital Market Authority is proposing regulatory changes to encourage the issuance of asset-backed securities (ABS), aiming to create a market larger than many European countries. The revisions focus on improving governance and procedures for special purpose entities, which are crucial for securitization transactions. This initiative is expected to enhance the attractiveness of ABS as a financing option, potentially leading to increased investment and participation from both domestic and international investors.

• The proposed changes come at a time when the Saudi market is already experiencing positive momentum, as evidenced by the recent rise in the Tadawul All Share Index. The ABS market's growth could further stimulate the financial sector, attracting more foreign direct investment and enhancing the overall economic landscape. This shift aligns with broader trends in the region, where financial markets are evolving to support diverse investment opportunities and improve liquidity.