Investors can trade in govt debt instruments, says Tadawul CEO

Trading in government debt instruments on Tadawul will be accessible to all investors, including qualified foreign investors (QFIs), official news agency SPA reported on Sunday, citing Khalid Al Hussan, chief executive officer of Tadawul.

The debt instruments will be traded every day from 11:30am to 3:00pm Riyadh local time.

"Listing the riyal-denominated government debt instruments will enhance the sukuk and bond markets, which in turn will further boost liquidity in the secondary market and enhance the attractiveness of debt instruments to investors and issuers," Al Hussan said.

The local instruments are distinguished for their stable returns and high reliability, which will help create a yield curve for the sukuk and bond market, he added.

The Saudi exchange said on Sunday that government debt instruments will debut on the market Apr. 8, Argaam reported.

Tadawul will list 45 primary and secondary debt instruments, comprising a broad range of government development bonds, floating rate bonds, and Saudi government sukuk, with a combined value of SAR 204.4 billion with maturity dates ranging between five, seven and ten years.