Tadawul to cross-list GCC firms from next year: Al-Suhaimi

Saudi Stock Exchange (Tadawul) plans to allow GCC-based companies to cross-list on the exchange starting next year, chairperson of Tadawul Sarah Al-Suhaimi said on Wednesday about the latest reforms that the exchange plans to implement to help align it to global standards.

“And (we) are going to introduce a clearing house, which will enable us to have derivatives and other products,” Al-Suhaimi added, speaking at the Future Investment Initiative conference in Riyadh.

Tadawul, which is the Gulf region’s largest exchange in terms of market capitalization, is actively working to bring in international standards as it seeks a place on MSCI emerging market index.

“The results have started to show, especially with the announcement last June for the Saudi market being on the watch list of the MSCI,” she said.

Tadawul began introducing new measures starting last year, when it formed a closed joint stock SAR 400 million Securities Depository Center Co. in September.

In January this year, the Capital Market Authority (CMA) released new governance rules, making it obligatory for all listed companies to use International Financial Reporting Standards (IFRS).

“We are introducing more transparency to our market, and that is one way of lowering risks that can be associated with any emerging market,” Al-Suhaimi said.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com