Tadawul launches Saudi depositary receipts

Tadawul launches Saudi depositary receipts

Title: Tadawul Launches Saudi Depositary Receipts

The Saudi Tadawul Group, operator of one of the world's largest exchanges, has announced the launch of Saudi Depositary Receipts (SDRs). This initiative aims to enhance the Kingdom's capital market and attract foreign investors [1].

The SDRs, which are tradable securities that represent ownership in the underlying shares of a foreign company, will be listed on the Saudi Exchange. This move is part of the Saudi Tadawul Group's strategy to diversify its offerings and strengthen its position as a regional capital formation center [1].

The launch of SDRs is expected to facilitate access to the Saudi market for foreign investors, thereby increasing liquidity and market depth. Additionally, it aligns with the Saudi government's Vision 2030 program, which aims to diversify the economy and reduce dependency on oil [1].

The Saudi Tadawul Group has a strong track record of delivering innovative financial products. The successful execution of the Saudi Aramco IPO, the largest ever globally, demonstrates its capability to handle significant capital markets transactions [1].

The introduction of SDRs is another step in the Saudi Tadawul Group's growth trajectory. It follows the group's strategic initiatives to develop new asset classes, products, and services, and to enhance its technological capabilities [1].

The launch of SDRs is part of the broader efforts to make the Saudi capital market more sophisticated and competitive. It is expected to attract a larger pool of investors and contribute to the overall development of the Saudi economy [1].

References
[1] https://www.tadawulgroup.sa/wps/portal/tadawulgroup/invester-relations/ipo?locale=en