The Saudi Stock Exchange (Tadawul) said on Monday that foreign companies are now allowed to list on the local market, “upon the Capital Market Authority (CMA)’s approval of amended Listing Rules including provisions related to foreign listing.”
“Foreign Listings on the Saudi market reflects the importance of integration between capital markets in the region. This will facilitate issuers’ access to new funding resources and enable investors to reach a diversified pool of investment tools,” Khalid Al Hussan, CEO of Tadawul said in a statement.
Tadawul had started since 2015 developing rules and regulations for foreign listings, in close coordination with the CMA.
The move is seen as a positive step towards opening up Tadawul, which is currently the Middle East and North Africa region’s most liquid market, said Mohammed Ali Yasin, chief strategy officer at UAE-based Al Dhabi Capital.
“I think it’s a positive thing for the Saudi market, and I think it will be interesting once we see one or two companies list there and how that will that go in terms of traded value, because if the trading on those companies is substantial it will also attract investors into those companies in their home market,” he told Al Arabiya English.
The Tadawul’s Securities Depository Center Company (Edaa) has already signed two agreements with Abu Dhabi Securities Exchange and Bahrain Clear to “enable foreign companies to list on Tadawul and to unify administrative and operational procedures between the two countries,” the Saudi bourse said in the statement on Monday.
Matthew Amlôt, Al Arabiya English, contributed to this article.