Saudi trading is aimed at more integration and procurement agreements to strengthen financial markets

The Saudi group “Tadawul” said it was targeting more integration and acquisitions as part of its effort to improve the development of the local financial market and attract foreign investors. Lee Hodgkinson, CEO of Strategy at Tadawul, explained that the Royal Authority of the Saudi financial market believes that the upcoming opportunities are concentrated in data and analyzes, following the recent conclusion of an agreement with the ‘Mubasher Financial Network’ (Direct Financial Network) in Saudi Arabia. In an interview on the Money Markets Forum in Riyadh, he added: “We expect the integration and acquisitions to play a greater role in our future compared to what it was in the past.” Indicators for Saudi shares are expected to be more introduced to the circulating indicators that follow the shares of Saudi businesses. Hodgkinson pointed out that “Tadawul” is currently participating in almost a dozen of the world’s circulating indicators, with increasing interest in investors in China. He said: “The circulating indicators will be a strong driver for growth in the kingdom. There are still many investors we can achieve.” Read more: The Chinese investment in Saudi indicators’ funds is rising with the increasing approach between the two countries. Saudi Arabia places the development of a more powerful financial sector above its priorities as part of its attempt to increase economic growth -oil and attract foreign investment. A series of initial proposals, including 15 proposals in the main market last year, contributed to the expansion of investor options in the stock market. Tadawul also recently revealed a new framework to increase the liquidity in fixed income trading, pointing out that it will continue its efforts to facilitate the access of foreign investors to the market. An integrated Saudi economy added Hodgkenson: “We see a change in the world’s view of Saudi Arabia, as it is not only seen as an economy based on hydrocarbons, but as an integrated economy that covers many sectors.” In the stock market, the average daily value traded last year rose to about two billion dollars, according to “Tadawul” data. Foreign investors from outside the Arab Gulf states, including the UAE and Qatar, formed almost a third of the total trades by the end of 2024, three times the percentage recorded in 2020. Analysts believe that the diversity of initial proposals has contributed to the increase of the attractiveness of the Saudi market. Since the end of 2023, a number of traded indicators following the shares of Saudi businesses in foreign markets have been launched. States Street Corp has recently launched the First Trading Indicators Fund to detect Saudi bonds in Europe and announced that they intend to offer more products that give investors greater access to the local debt market.