Tadawul ‘occupies advanced position in emerging markets’

03/01/2016 05:18 AST

The Saudi stock exchange (Tadawul) plans to issue part of the shares in trading for public subscription in 2018 after completing the requirements and obtaining the necessary approval.

“Tadawul occupies an advanced position in emerging markets,” Khalid bin Ibrahim Al-Rabiah, president of Tadawul’s governing council, said, adding that the Saudi stock market is strong in liquidity, value traded and the rate of stock turnover.

“It also represents 51 percent of the total market value of the GCC Capital Market and 79 percent of the total traded value,” he said.

“We are proactive and support the national economic transformation plan by introducing part of the ownership of the company to the public as it represents trading from economic center serving nearly five million investors,” Al-Rabiah added.

Since the establishment of trading in 2007, the Kingdom has been promoting investment in infrastructure technology and cadres of Saudi systems. The Kingdom has adopted a number of major initiatives taken before to process initial public offerings (IPO), and diversifying the sources of company incomes.

“We have diversified the sources of income of the company, where these initiatives are aimed at developing the market,” Al-Rabiah said.

He added: “We have also invested in the deposit, clearing and settlement infrastructure, in addition to the possibility of introducing parallel markets of different financial instruments.” “We intend to launch a special campaign to promote awareness among the public in general and the community of investors in the Saudi stock market and the opportunities provided by investors within and outside the Kingdom,” Al-Rabiah said.

He added that trading in the local stock market has achieved many of its strategic objectives.

Arab News