The Saudi Stock Exchange (Tadawul) plans to introduce a central clearing house that will enable derivatives trading as well as the cross listing of GCC markets and foreign companies.
Speaking on the second day of the Future Investment Initiative in Riyadh, Sarah al-Suhaimi, chairperson, Tadawul, said the exchange has undertaken a huge raft of reforms over the past year and a half, but “there is more to come.”
Al-Suhaimi said the Tadawul has a pivotal role to play in Vision 2030 and the reforms enacted since 2016 are intended to bring the exchange into line with other emerging markets and lower the risks for investors.
The reforms undertaken include new corporate governance rules for listed companies, the launch of a Real Estate Investment Trusts’ (REITs) market, spinning off the Securities Depository Centre and the successful launch of Nomu, a parallel equity market for qualified investors.
The Tadawul is the largest stock exchange in the GCC by market capitalisation and the 26th largest globally. It is on the watch list for potential upgrade to emerging market status of three index compilers.