Saudi Arabia's markets regulator CMA faces mounting pressure to reverse course on policies granting local retail investors increased access to IPOs. Industry experts warn these reforms may continue to degrade listing performance, raising questions about the sustainability of Saudi's capital market development strategy.

Sumaya Aljazeeri, Assistant Vice President of Research at SICO Bank, addressed these concerns during an interview with Bloomberg's Jennifer Zabasajja on "Horizons Middle East and Africa." Aljazeeri examined the intricate relationship between regulatory reforms and market performance in Saudi Arabia's evolving financial landscape.

The debate over retail investor participation in IPOs reflects broader tensions between financial inclusion and market efficiency. Saudi Arabia continues to balance these competing priorities as it seeks to develop a vibrant domestic capital market while maintaining appeal to institutional investors.