Co-Director of Research at Beltone Financial Holding Ahmed Hesham said that the improvements within the Saudi Tadawul Group are aimed at supporting the trading infrastructure.
Hisham indicated in an interview with “Al Arabiya”, that These improvements It aims to improve post-trading services, in terms of deposit and settlement, explaining that this is a positive thing for the market.
Earlier today, the Saudi Tadawul Group Holding Company announced the issuance of the Capital Market Authority Board’s decision approving the new structure for the financial compensation for the services provided by the group’s subsidiaries (the Saudi Tadawul Company, the Securities Depository Center Company “Edaa” and the Securities Clearing Center Company “Muqassa”). “) in respect of commissions for buying and selling shares, units of real estate investment traded funds (REITs), units of exchange-traded funds (ETFs), units of closed-end investment funds (CEFs), and priority rights.
Hisham stressed that these measures enhance trading within the market, put the “Tadawul” group on the ranks of global markets, and strengthen Saudi Arabia’s position among the investment-attracting markets.
He added that the Saudi stock market is competing with global markets, and the size of the market or the number of listed companies and liquidity cannot be ignored.
Hisham stated that the settlement process is one of the most important post-trading operations, because the current or potential investor wants an effective and quick process.
Hisham expected the strength of the initial offerings in the market to continue, especially following the successful offering of between 16-18 companies in the first quarter of 2022, while global and regional markets did not witness any new listings.
Hisham indicated that, according to official statements, there are 70 requests for listing in the main market and the parallel market is a growth, so it is expected that the strong pace of offerings will continue.