Saudi -deposit certificates .. an instrument that attracts successors and awaits the completion of organizational controls
Financial markets are no longer clearly divided between locally and worldwide. In the era of cross -boundary liquidity, stock exchanges in meeting points, not just trading platforms, become. The Kingdom of Saudi Arabia is taking a new step in this direction, through the mechanism of ‘Saudi Deposit Certificates’ (SDRS), which opens the local investor a direct window to the shares of international enterprises, within the Saudi market. But the importance of this tool does not stop as you trade. It represents a structural change in the market environment, and introduces the rise of new groups of investors, such as the traders, which reflects the transformation of ‘trading’ from a local market to a platform with a global dimension. What are the Saudi Deposit Certificates? Deposit certificates are a financial instrument that represents indirect ownership in the shares of foreign businesses. This is issued by transferring the original shares to a local deposit business, which in turn issues identical certificates distributed in the local market according to a pre -defined transfer coefficient. Read more: The Saudi Stock Exchange introduces certificates of deposits for investment in global shares to complete the expected controls and start officials in ‘Tadawul’. He emphasized that these certificates in the Saudi -Riyal will be traded and will be subject to a settlement locally, while investors grant the full rights to original shareholders, including voting and profit divisions. The tool will be available to local as well as foreign investors, and it allows trading shares of major international businesses within the Saudi market, which increases the attraction of the market and increases its integration with international markets. A new window to the world since the announced tool has emerged. Mohamed Al -Farraj, the first president of asset management in Capital’s Wints, believes that the deposit certificates represent a bridge that links the local investor with global liquidity, and explains that this step will provide unprecedented opportunities for diversification without bureaucratic burdens outside the kingdom. Al -Farraj emphasized that the rise of what is known as the ‘conquests’, which jerk the price differences between the original arrow and its local counterpart, is a healthy development as it contributes to raising the efficiency of pricing and accelerating local prices to its global peers. This trend comes at a time when the values of trading in the financial market institutions in Saudi Arabia reached record levels in the US market, where by the end of the second quarter of 2025, they scored about 193.4 billion in rows, a 230% increase with the same period in the previous year, according to the data of the Saudi Capital Market Authority. Trading Values at Saudi Capital Market Institutions in the American Markets, the Value Period (One Billion Riyals), The First Quarter 2024 62.31, The Second Quarter 2024, 58.56, The Third Quarter 2024 89.66, The Fourth Quarter 202.18, The First Quarter 2025. 164.31, The Second Quarter 2025 193.40, Cooperation with International Stock Exchanges, “Trading” Stakes are not limited to the depth of the local market, but extends to improve collaboration with large stock exchanges. The US stock exchanges such as the New York Scholarship (NYSE) and Nasdaq (Nasdaq “are emphasized as weighted options, along with London and Frankfurt with large companies, and Asia exchanges such as Hong Kong and Tokyo. -Zakir, CEO of the “Financial Standard” business, believes that the deposit certificates add a qualitative depth to the local market, as it enables the entry of non -located sectors such as technology, luxury goods and health care, which improves the argument of the portfolio. A fully local tool is aimed at attracting the investor base in the Saudi market. consolidate.