The Union of Arab Securities Authorities (UASA) Board approved the 18th annual report and financial statements for the year 2023 during its annual meeting held in Doha, Qatar on 24/04/2024. The report presents the most important activities of the members in market regulation and oversight, enforcement, awareness, international cooperation, market development, financial technology, and financial inclusion. The report also included the most prominent work accomplished by the Union and its work plan for 2024, in addition to a set of issues of interest to Arab securities authorities, especially with regards to strengthening aspects of cooperation and coordination among the Union members.
The annual report indicates that the General Secretariat has, within the framework of the pillar of enhancing cooperation between the members of the Union in the field of developing financial markets and facing risks, in cooperation with the work team formed for this purpose, continued the work related to establishing guidance rules on best practices in sustainability, issuing guidance rules on best practices in combating money laundering and terrorist financing, as well as developing guidance rules on crowdfunding in Arab capital markets. Additionally, the report indicated that the work team is currently working on issuing guidance rules for cross-border financial activities and capital flows. The council assigned the working team and the Union's General Secretariat to publish the rules on the Union's website, after taking into account the members' feedback. As for education, investor awareness and financial inclusion, the working group analyzed the results of the survey that was prepared to find out the reality of the situation among the members of the Union. The working group, in cooperation with the General Secretariat of the Union, is currently working on submitting proposals related to the development of an investor education and awareness portal on the Union’s website.
With regards to financial technology and cyber risks, the working group formed for this purpose completed in cooperation with the General Secretariat of the Union the development of a guide for principles on the uses of artificial intelligence and machine learning among the members of the Union. The working group prepared a format that assesses the cyber risks of the entities that are subject to its supervision to be used by the members of the Union. The Union’s General Secretariat and the work team has been assigned to prepare a report on enhancing cooperation among Union members and exchanging expertise, based on the results of the format conducted for this purpose. Additionally, they are to take the necessary steps regarding practical measures to enhance cooperation and exchange expertise among Union members in the fields of financial technology and cybersecurity.
The UASA, within the framework of the UASA’s strategic plan 2021-2025 objectives, implemented a number of specialized training programs in line with the requirements and training needs of the Union members to contribute to the development of self-regulatory capacities and enhancing the efficiency and effectiveness of regulatory authorities in various areas. The training programs specifically targeted the human cadres working in the regulatory authorities at different levels of employment, especially those working in regulatory and supervision aspects of capital markets institutions. Some programs also targeted other entities operating in the capital markets, including exchanges, depository and settlement centres, brokerage firms, listed companies, banks, financial institutions, and other entities related to the capital markets. With regards to achieving harmony and consistency in regulations of the Union members, the work groups of the UASA continued to work on the initiatives of the UASA’s strategic plan for the years 2021-2025, which included various areas including developing capital markets, facing risks, supporting liquidity and sustainability, financial technology, cyber risks, investor education and awareness, and enhancing financial inclusion.
The UASA’s annual report also showed that the global economy has been affected by crises and geopolitical changes, leading to continued decline in global economic growth rates and unprecedented levels of inflation. This has compelled countries worldwide to persist in implementing contractionary policies to combat inflation and achieve financial stability. However, despite this, the year 2023 witnessed a noticeable increase that significantly reflected on global market indicators. The data released by the World Federation of Exchanges (WFE) indicates that the market capitalization of global financial markets reached $111.2 trillion compared to $98.6 trillion in 2022, an increase of 12.3%. US markets accounted for approximately 48.5% of the total global market capitalization, followed by Asian and Pacific markets with 30.6%, and European and Middle Eastern markets at 20.9%
As for the Arab financial markets, the market value of these markets increased in 2022 compared to its level achieved in 2021, as it amounted to about (3.9) trillion dollars, an increase of 8.1%. The market value of the Saudi Stock Exchange (Tadawul) constituted about 68% of the total market value of the Arab financial markets combined, reaching $2.6 trillion at the end of 2022.
The seventeenth annual report can be viewed in both Arabic and English through the following links:
Arabic version
English version