Capital Markets
From The Report: Saudi Arabia 2019
View in Online Reader

While primarily an equity exchange, over the past decade the Saudi Stock Exchange (Tadawul) has evolved from its starting point as a single-asset-class platform to include a wider array of financial instruments, starting in 2010 with the addition of an exchange-traded fund. Tadawul entered 2019 on the back of a strong year, in which the main index showed the first solid gain since 2016. A raft of reform measures, inclusion in some of the world’s most influential indices and a lengthy roster of initial public offering prospects emerging from the Kingdom’s Vision 2030 strategy mean that the near term is likely to be another lively period for the market. This chapter contains an interview with Khalid Al Hussan, CEO, Saudi Stock Exchange (Tadawul).

Articles from this Chapter

Overview

Rising status: New instruments on offer and increased foreign involvement are setting the stage for an influx of new investment
OBG
plus

The Saudi Stock Exchange (Tadawul) entered 2019 on the back of a strong year, in which the main index showed the first solid gain since 2016. A raft of reform measures, inclusion in some of the world’s most influential indices and a lengthy roster of initial public offering (IPO) prospects emerging from the Kingdom’s Vision 2030 strategy mean that the near term is likely to be another lively period for the market. History The modern era of Saudi Arabia’s capital markets began in the…

Interview

Taking the long view: Khalid Al Hussan, CEO, Saudi Stock Exchange (Tadawul), on past successes and future plans to spur capital growth
OBG
plus

Interview:Khalid Al Hussan How can capital markets help to fulfil Vision 2030? KHALID AL HUSSAN: Vision 2030 underpins the government’s efforts to modernise the economy, stimulate private sector growth, diversify away from hydrocarbons, privatise state-owned enterprises, reform markets and reduce subsidies. There was early recognition that capital market reform is the linchpin to unlock the economy’s potential and stimulate private sector growth. Over the past two years Tadawul and the…

Overview

Indexed growth: Inclusion in global indices often results in a greater flow of funds to capital markets, but it is just one aspect of the economic picture – Saudi
OBG
plus

The period of easily raising funds from abroad seems to be coming to an end for emerging markets around the world. In the new environment of higher interest rates in the US and increased competition for capital flows, portfolio managers are becoming more selective with where they place their money. One way for developing nations to ensure that their financial markets can continue to attract foreign funds and remain sustainably liquid is by being included in well-regarded benchmark indices. In addition to drawing in fund managers, inclusion on such indices requires specific standards that indicate that the participating countries apply certain…