Saudi Tadawul Group eyes improved performance of listings in 2021, plans new products

Logo of Saudi Tadawul Group

Saudi Tadawul Group aims to improve the performance of new listings, which faced some difficulties in 2020.

Some cross-listings are expected this year, as a result of the memorandums of understanding (MoUs) signed with Abu Dhabi Securities Exchange (ADX) and Bahrain Clear.

Meanwhile, the derivatives market has been limited to the futures indices to date. The market is likely to expand in 2021 to include stock market clearing services.

“We can also look forward to many developments in derivatives, one of which is the launch of single-stock futures,” Saudi Tadawul Group said, noting that it aims to launch options and allow market makers to enter the derivatives market.

New products need time to be successfully introduced after thorough studies and assessment to ensure that they meet the target objectives.

"Several new indexes are also in the offing, including the Sharia index, which will be a performance measure of all Sharia-compliant companies in Tadawul,” the Group added.

The Group is also studying a new type of The MSCI Tadawul 30 Index (MT30), noting this move will increase the weight of companies with the highest dividend yields on the index.

Moreover, a corporate governance index will be introduced to boost the weight of companies, which comply with the governance rules issued by the Capital Market Authority (CMA).