Saudi Stock Exchange
|Headquarters||Riyadh, Saudi Arabia|
|Products||Cash equities, bonds and mutual funds|
The Saudi Stock Exchange (Tadawul) is the country’s only securities platform, and with a market capitalization of SR1,946bn at the end of 2007 ranks as one of the world’s largest emerging-market bourses. The electronic platform, recently upgraded by OMX also lists bonds and mutual funds.
The state-owned Tadawul was converted to a joint stock company in 2007, and is slated for an IPO within two years. Officials are also considering the lifting of restrictions on share-dealing by foreigners.
The Tadawul was launched in October 2001, replacing the bank-run trading system expanded during the 1980s, and introducing electronic trading in 1991. A new system, provided by OMX, was introduced in 2007.
Market capitalization rose from SR275bn in 2001 to SR1,946bn at the end of 2007, with 107 listed companies drawn from banking and diversified industrial and construction, providing the platform for the country's privatization program. The exchange was converted into a joint stock company in March 2007 with a capital of SR1.2bn controlled by the state Public Investment Fund.
Structure and Regulation
The exchange is regulated by the Capital Markets Authority, and trading hours are 11:00am-3.30pm, with 21 registered brokers, including affiliates of overseas institutions such as Deutsche Bank.