2025 will be a pivotal year for IR in the kingdom
As Saudi Arabia continues to take solid steps to achieve a number of strategic objectives under the Vision 2030 umbrella, the role of IR in the Kingdom is undergoing a major transformation.
2025 is expected to be a pivotal year for IR professionals and companies looking to attract both local and international investors, as economic diversification, digitalization and an increasing push towards ESG communications, continue to redefine the IR landscape. Below, I’ll detail some of the important trends shaping the Kingdom of Saudi Arabia’s IR landscape.
A catalyst for change
Vision 2030 — the government’s flagship development scheme— remains the driving force behind Saudi Arabia’s economic transformation, as the Kingdom continues to foster the growth of a number of crucial sectors such as renewable energy, financials, healthcare, technology and tourism.
Key programs, such as the Financial Sector Development Program, create a multitude of opportunities for capital markets, with the surge in the number of IPOs on Saudi Exchange across diverse industries, demonstrating the increasing maturity of the market and the growing prominence of the Kingdom as a global investment hub. In the light of this rising competition for capital, companies are increasingly recognizing the importance of robust IR strategies to effectively communicate their equity story and build a long-term and sustainable shareholder base.
Enhanced regulatory frameworks
Regulatory reforms are playing a crucial role in driving the growth of capital markets and investor relations within the Kingdom, through creating a more business-friendly environment, incentivizing investment and embracing digital innovations.
The introduction of Saudi Arabia’s new Investment Law in August 2024 (which comes into effect in February 2025) has been a significant development in this regard, by simplifying processes for foreign investors, protecting intellectual property, offering equal treatment with domestic investors and broadening the scope of available investment opportunities.
Such fundamental changes are expected to boost confidence among global stakeholders, while enhancing the Kingdom’s competitiveness, and encouraging greater foreign direct investments into the country.
The digital IR revolution
Technology is reshaping how companies approach investor relations. From virtual capital markets days and investor roadshows to the use of artificial intelligence and predictive analytics programs, technology is enabling IROs to engage more effectively with stakeholders. By analyzing market sentiment, and identifying key trends and correlations, AI-driven data analytics are providing real-time insights to accelerate decision-making and enable IROs to promptly respond to market changes.
Through embracing advanced technologies, companies in Saudi Arabia stand to benefit from not only streamlining their IR communications, but also building trust with investors, by adopting a proactive approach to engagement and offering greater visibility into corporate operations and strategic roadmap.
ESG taking center stage
ESG is no longer just a buzzword that is making headlines globally, but rather a strategic imperative for companies to drive investment decisions, build trust, enhance perceptions, and contribute to a sustainable future. At the national level, Saudi Arabia’s commitment to green energy initiatives, such as its plans to produce 4 million tonnes per annum of clean hydrogen by 2035, and renewable energy projects like NEOM, are garnering interest from ESG-focused investors around the globe.
Companies within the Kingdom are therefore increasingly looking to integrate ESG considerations into their IR strategies and enhance alignment between their internal ESG and IR teams, to ensure a consistent and compelling investment narrative that adheres to international sustainability goals. This will ultimately drive the success of the ESG agenda and enable companies to enhance their appeal to global institutional investors, who prioritize long-term value creation over short-term gains.
IR opportunities in 2025 and beyond
In summary, as the Kingdom continues its journey towards economic diversification and global integration, IR will play an essential role in bridging the gap between companies and an increasing number of stakeholders. Several factors are coming into play, such as regulatory reforms, technological advancements and a strong focus on ESG, to set the stage for a new phase of sustainable growth.
For IR professionals in the Kingdom, this presents unprecedented opportunities to innovate and become real drivers of change. Given the rising competition for capital, staying ahead of these trends is becoming crucial for IROs, to ensure their organizations thrive in one of the world’s fastest growing markets and contribute to shaping Saudi Arabia’s future as a global investment powerhouse.
Samah Ragab is associate partner — capital markets and investor relations at Instinctif Partners
