Closing Bell: Saudi main index closes in green at 12,157

The best-performing stock of the day was AYYAN Investment Co. Shutterstock
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Updated 17 July 2024
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Closing Bell: Saudi main index closes in green at 12,157

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 77.24 points, or 0.64 percent, to close at 12,157.61. 

The total trading turnover of the benchmark index was SR7.37 billion ($1.96 billion) as 157 of the listed stocks advanced, while 64 retreated.    

The MSCI Tadawul Index increased by 6.82 points, or 0.45 percent, to close at 1,520.39. 

The Kingdom’s parallel market Nomu decreased by 31.22 points, or 0.12 percent, to close at 25,887.91. This comes as 36 of the listed stocks advanced, while as many as 32 retreated. 

The best-performing stock of the day was AYYAN Investment Co., with its share price surging by 9.97 percent to SR19.42. 

Other top performers include the Miahona Co. and Al Sagr Cooperative Insurance Co., whose share prices soared by 9.88 percent and 9.41 percent, to stand at SR42.25 and SR24.88, respectively. 

National Gas and Industrialization Co. and Al-Baha Investment and Development Co. were also amongst the top gainers.  

The worst performer was the Mediterranean and Gulf Insurance and Reinsurance Co. whose share price dropped by 2.46 percent to SR31.70. 

Other underperformers included Baazeem Trading Co. and Arabian Pipes Co., with their share prices declining by 1.53 percent to SR64.30 and 1.20 percent to SR131.40, respectively.

Saudi Public Transport Co. and Red Sea International Co. also experienced declines in their stock prices.

Value Capital Co., serving as the financial advisor and lead manager, announced that Tharwah Co. intends to offer 705,735 ordinary shares, representing 15 percent of its total shares post-offering. The company’s shares will be listed on Nomu. 

Tharwah Co.’s application for listing on the parallel market. was approved by the Saudi Exchange on May 19, and the Capital Market Authority approved the offering on June 3. The price per share for subscribers will be determined after the book-building period. The one-week offering period is scheduled to commence on Aug. 4. 

Alkhabeer Capital, a Shariah-compliant investment and financial services firm, has announced the listing and commencement of trading for the Alkhabeer Diversified Income Fund 2030 on the Saudi Exchange. 

In an official statement, the fund reported successful participation from a diverse group of investors, including individuals and institutions, during its initial public offering.  

The IPO concluded on June 13, attracting 144,132 subscribers and raising a total of SR305.4 million. 


Muqassa partners with FIS to enhance trade automation and expand clearing services 

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Muqassa partners with FIS to enhance trade automation and expand clearing services 

RIYADH: Saudi clearinghouse Muqassa has announced a partnership with Fidelity Information Services Global to enhance trade automation for market participants. 

In an interview with Arab News during the Capital Markets Forum in Riyadh, Wael Al-Hazzani, Muqassa’s CEO, stated that the collaboration marks a significant step in expanding the firm’s services and improving operational efficiency within the Kingdom’s financial markets. 

“Today we announced our collaboration with FIS, one of the biggest technology providers, to facilitate automation for market participants,” said Al-Hazzani, adding: “This will be part of our solution, hopefully in the second half of this year.” 

The CEO emphasized that while FIS is the first provider, Muqassa intends to partner with additional technology firms. 

“FIS is a big player in this field, and international market participants use it heavily. We are complementing our offering to reach clients familiar with FIS, but this won’t be the last partnership — we will announce others soon,” he said.

 Muqassa, which plays a central role in clearing exchange-traded products and providing risk management, is also expanding its services to the over-the-counter market. 

“Currently, we clear repo transactions traded OTC (over-the-counter), and next in the pipeline are OTC interest rate derivatives,” Al-Hazzani said, adding: “We aim to launch this service in 2025, pending regulatory alignment and technology testing.” 

In addition to enhancing clearing services, Muqassa is advancing its role in the Kingdom’s fixed-income market. The company has increased the number of government sukuk eligible as collateral for clearing members. 

“Previously, only cash was accepted as collateral. Now, all government sukuk can be included in the collateral basket,” Al-Hazzani said.

“This provides relief to clearing members, allowing them to use part of their balance sheet sitting in sukuk instead of cash,” he continued.

Currently, up to 20 percent of a clearing member’s collateral pool can consist of government sukuk, but Muqassa plans to expand this as market liquidity improves. “As the market matures, we are interested in increasing the weight of acceptable sukuk for collateral,” Al-Hazzan added. 

Looking ahead, Muqassa is prepared to accept a broader range of securities as collateral, provided they meet liquidity requirements. 

“By rules and by technology, we are ready to accept any type of security as collateral,” Al-Hazzani said, going on to say: “The key prerequisite is liquidity— there must always be a buyer in the market in case liquidation is needed. As we grow, we will gradually expand the eligible basket of collateral to include equities, bonds, and stocks.” 

While Muqassa’s immediate focus remains on the Saudi market, it has long-term plans to expand regionally. 

“We are still a young company with many initiatives ahead, but our next step will be to explore markets in the GCC and beyond,” Al-Hazzani said.

Muqassa was established as part of Saudi Arabia’s Financial Sector Development Program to enhance market efficiency and attract global investors.

By centralizing counterparty risk management and aligning with global clearing standards, Muqassa aims to support the continued evolution of the Saudi financial market.


Saudi Exchange eyes 50 IPOs as market maturity grows, says top official 

Updated 13 min 51 sec ago
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Saudi Exchange eyes 50 IPOs as market maturity grows, says top official 

RIYADH: Saudi Arabia’s stock exchange has a robust pipeline of 50 initial public offerings, a sign of growing confidence in the Kingdom’s capital market, according to a top official. 

Lee Hodgkinson, group chief strategy officer at Saudi Tadawul Group, said the increasing number of private sector listings underscores the maturity of the country’s financial ecosystem. 

The assessment aligns with professional services firm EY, which expects Saudi Arabia to lead IPO activity in the Middle East and North Africa this year. 

“There are more than 50 prospective IPOs registered at the CMA (Capital Market Authority). That is a very healthy pipeline. I’m sure a pipeline that is envied by many of our exchange peers around the world,” Hodgkinson told Arab News on the sidelines of the Capital Markets Forum in Riyadh. 

“The conventional wisdom is almost all of that pipeline must be government-related companies. Actually no, it is the private entities that are coming to market, which I think is a sign of real maturity of the capital markets in the Kingdom,” he added. 

Capital market growth

Saudi Arabia’s capital market is on a steady growth trajectory, with strong momentum expected through 2030, Hodgkinson said. 

“The economic drive in the Kingdom, it’s really quite astonishing, particularly relevant to the rest of the world. So, it really is boom time, and it long might continue,” Hodgkinson noted. 

The executive highlighted the Kingdom’s debt market as a future area of success, driven by ongoing regulatory reforms. 

“If you look at CMA strategy, if you look at the financial services development plan and the whole ecosystem drive, I feel very confident that we’ll see a very powerful debt market really emerging in Saudi Arabia in the coming years,” he said. 

Tadawul Group is working toward establishing Saudi Arabia as a global financial hub bridging the East and the West. As part of this strategy, the exchange is expanding its investor base, particularly among qualified financial investors. 

“We’re looking to internationalize, institutionalize and electronify the business,” he said, adding that three years ago, around 8 to 9 percent of institutional electronic flow came from overseas, which he described as “not a particularly large number of QFIs.” 

Hodgkinson pointed out that today, that volume accounts for 25 percent of the market and noted that they now have over 4,000 QFIs. “The growth of international investors and eyeballs on the Saudi market has exploded,” he added. 

Commodities market expansion

Saudi Tadawul Group is also pushing into the commodities sector, particularly through its investment in the Gulf Mercantile Exchange, formerly the Dubai Mercantile Exchange. 

“The contracts at the moment are about Omani crude oil — it’s the third-largest physically delivered oil contract in the world, mainly attracting clients east of Suez, China and India. We would be driving growth in those products with our partners,” Hodgkinson said. 

Tadawul is also looking to expand into metals, mining, and agriculture — key industries in Saudi Arabia’s economic transformation under Vision 2030. 

“Real economy actors have a lot of risks — production risks, pricing risks, marketing risks. Commodity hedging to us can be very valuable,” Hodgkinson noted. 

He stressed the need for regional benchmarks in commodities pricing, particularly for metals and mining. 

“Saudi Arabia is becoming a very important player in the metals world. I think 20 percent of steel is being imported into Saudi Arabia for construction. And the issue for me is, why should those products be priced overseas?” 

“The South-South connectivity from markets like Brazil, China, and India with Saudi is growing. Why shouldn’t we have products that serve those markets rather than having to price everything in London or New York?” 

Strategic acquisitions

Tadawul Group has been expanding its regional footprint, including a 32.6 percent stake acquisition in GMEX and a 49 percent stake purchase in Direct Financial Network Co. through its subsidiary Tadawul Advanced Solutions Co. 

The GMEX deal makes Saudi Arabia the only G20 nation with a dedicated commodities exchange. “It was a very, very important strategic move for us,” Hodgkinson said. 

The DirectFN acquisition, meanwhile, enhances Tadawul’s technology capabilities and expands its fintech presence in Saudi Arabia and the broader Middle East and North Africa region. 

“It gives us a highly effective and cost-effective technology development center in Sri Lanka. It builds our presence in the Saudi market in the fintech arena. It starts to give us technology and client relationships in other countries in the MENA region,” he added. 


Saudi Exchange launches new system to streamline IPO process, says CEO

Updated 30 min 38 sec ago
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Saudi Exchange launches new system to streamline IPO process, says CEO

RIYADH: Saudi Arabia’s stock exchange has introduced a new Capital Management System to streamline the initial public offering process, lowering costs for companies, and broadening investor participation.

In an interview with Arab News at the Capital Markets Forum in Riyadh on Tuesday, Mohammed Al-Rumaih, CEO of Saudi Exchange, explained that the new system is set to transform the Kingdom’s capital markets by making IPOs faster, more affordable, and accessible to a wider range of investors.

“It’s a revolutionary system that will serve three main goals. One, make it quicker for companies to do their IPO, also cheaper for them and as well, open the opportunity for a bigger set of investors, so it used to be only for receiving banks usually for three,” Al-Rumaih said.

He further elaborated, saying: “Now we have 15 connected to our system, resulting in greater coverage, more investors, and quicker listings after book closing. This was a soft launch, but today we announced its expansion to all markets, including the main market.”

Regarding international investor participation in the Saudi market, Al-Rumaih dismissed concerns about significant barriers, pointing to the steady growth in foreign investment inflows.

“As of today, we don’t see major barriers. We can see from the numbers that we publish weekly that foreign investors have been growing on a weekly basis,” he noted.

Al-Rumaih also disclosed that foreign investors have been net buyers of Saudi stocks for the past three years, with foreign ownership surpassing SR400 billion and continuing to grow.

He emphasized that ongoing market infrastructure improvements, including enhancements for high-frequency trading, market makers, and regulatory reforms, are further strengthening foreign investor involvement.

“We see a lot of excitement. Today, we’ve met with many investors—some for the first time—while others are looking to double down on the Saudi market. Everyone is optimistic about its future, and we believe this year will continue the trend of foreign investors being net buyers of Saudi equities,” Al-Rumaih stated.

He also emphasized the Saudi Exchange’s efforts to strengthen the debt market, where foreign ownership remains relatively low.

“The debt market still has low ownership from foreign investors for many reasons. Most importantly, we have only had a few corporate issuances, but there is a strong and growing market for government sukuk,” Al-Rumaih said.

The Saudi Exchange is working toward inclusion in international sukuk indices, following a similar successful push for equity market inclusion.

“We believe we are on the right track based on the feedback we’ve received from investors. Hopefully, this year will be another successful year for Tadawul,” he said.

Discussing Saudi Arabia’s expanding role as a global financial hub, Al-Rumaih highlighted the Kingdom’s strong leadership and its commitment to Vision 2030 goals, which have already seen successes ahead of schedule in certain areas.

“Whoever invested in the Saudi market knows that we have great leadership with a great vision. They have been committed to the goals of Vision 2030, and we have reached some targets ahead of time, so we raised the bar,” he stated.

Al-Rumaih also pointed out that Saudi Arabia ranked first globally in IPO listings in 2023, surpassing all other markets. Foreign investment activity surged by 80 percent last year, with further growth expected as more market makers, HFTs, and IPOs enter the scene.

“We believe this year will see even greater foreign investment inflows as we continue to introduce more market enhancements,” Al-Rumaih said.

Saudi Exchange is also actively working to expand cross-border partnerships, signing agreements with foreign exchanges and facilitating the listing of more exchange-traded funds.

Following the interview, Saudi Exchange announced the signing of a memorandum of understanding with Jakarta Futures Exchange, aimed at encouraging large Indonesian firms to explore opportunities within the Kingdom’s capital market.

“We are working even more and connecting with international markets. You would see more ETFs and more agreements. We are signing an agreement just after this meeting with another exchange in a country that looks at Saudi as a great investment destination,” Al-Rumaih said.

He further emphasized: “You will see more ETFs and more agreements. We are signing an agreement right after this meeting with another exchange in a country that sees Saudi Arabia as a great investment destination,” Al-Rumaih revealed.

Additionally, Saudi regulators have updated listing requirements to unlock the full potential of the debt market, making it easier for companies to raise funds through bond issuances.

“Every company needs liquidity and long-term financing. What we have done is shorten the time, reduce the requirements, and make it more attractive,” he explained.

The Kingdom is on track to achieve a record number of debt issuances in 2024, with the total percentage of debt market activity expected to grow significantly.

“We are currently at 18 percent debt market penetration, including both government and private sector issuances. This is far below the G20 average of over 80 percent, which means there is a lot of room to grow,” Al-Rumaih concluded.


Saudi Arabia’s capital market booms as Vision 2030 fuels IPO surge and foreign investment: CEO

Updated 39 min 51 sec ago
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Saudi Arabia’s capital market booms as Vision 2030 fuels IPO surge and foreign investment: CEO

RIYADH: Saudi Arabia’s capital market continues to experience robust growth, driven by Vision 2030 and a flourishing economic landscape, according to a top official.

Speaking with Arab News on the sidelines of the Capital Market Forum in Riyadh, CEO of EFG Hermes Saudi Arabia Saud Al-Tassan highlighted the unique strength of the local market.

The top official highlighted that the Saudi stock market has become a “highly attractive venue” for leading private companies to list their initial public offerings.

“I think the Saudi market is growing at a very interesting rate, driven mainly by the economy and all the changes, the Vision 2030. We’re going through a transformational period right now for the Kingdom,” Al-Tassan said.

“One of the unique things in the Saudi market is that it has very strong local demand and this is very unique compared to a lot of regional markets. Although there is strong demand coming from international names, the local demand still takes up the bigger chunk,” he added.

EFG Hermes expanding offerings, eyes market leadership

While Al-Tassan did not disclose specific upcoming announcements, he confirmed that EFG Hermes is actively working on multiple initiatives. “We are continuously innovating and trying to offer the best services to our clients, and we are always thinking of different ways to add value, and hopefully, there will be some interesting announcements soon,” he said.

Regarding securities lending, Al-Tassan acknowledged that while it contributes a small percentage to EFG Hermes’ revenue in the Kingdom, the firm sees it as a strategic priority. 

“It’s part of evolving and offering our clients full-fledged services. We’re hoping that will increase in the coming years,” he said.

IPO market witnessing unprecedented growth

Saudi Arabia’s initial public offering market is experiencing a rapid expansion, with a growing number of offerings under review by the Capital Market Authority. EFG Hermes has played a key role in the market, closing several IPOs last year and maintaining an even larger pipeline for 2025.

“IPOs are going through a very interesting period right now in Saudi. The pipeline with the CMA is growing quite rapidly, and we have a very large pipeline this year that we’re eager to bring to the market,” Al-Tassan said.

He reaffirmed EFG Hermes’ position as a market leader in equity capital markets across the Middle East. “Last year, we were very active, and it was a very successful year for EFG in terms of IPO advisory. This year, we have an even larger pipeline, and we’re optimistic it will be an even better year.”

Al-Tassan added: “We have a number of very sizable and highly sought-after IPOs we’re working on. There has been significant growth from last year, both on the ECM and M&A front.”

Regulator’s role and foreign investment surge

According to the top official, regulatory reforms and government-backed initiatives have been instrumental in elevating the Saudi landscape. 

“The regulator has played an instrumental role in bringing the market to where it is today. We anticipate a lot of foreign participation this year, driven by expected IPOs and government-related company listings,” he noted.

Debt market and future growth prospects

While the debt market is not currently a significant revenue driver for EFG Hermes, Al-Tassan highlighted its strategic importance. “We expect it to be a significant part of our business in Saudi in the coming years.”

Looking ahead, Al-Tassan remains optimistic about the Kingdom’s capital market expansion, citing Vision 2030 as a key driver. 

“As long as IPOs feature quality names, there will be strong demand. We do not expect any slowdown, and our strong pipeline reflects this ongoing investor interest,” he added.


Saudi Exchange targets Indonesian firms with Jakarta Futures MoU 

Updated 5 min 26 sec ago
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Saudi Exchange targets Indonesian firms with Jakarta Futures MoU 

RIYADH: Saudi Arabia’s stock market is set to attract Indonesian firms following a new memorandum of understanding with the Jakarta Futures Exchange. 

Signed during the fifth Capital Market Forum, the agreement will see JFX members promoting the Kingdom’s trading platforms to both retail and institutional investors, strengthening financial ties between the two markets. 

In another step to bolster Saudi Arabia’s financial infrastructure, Fidelity Information Services Global inked an MoU with Muqassa, a subsidiary of the Saudi Tadawul Group, to enhance the Kingdom’s derivatives market. The partnership aims to integrate advanced technologies that improve market efficiency and liquidity. 

These deals were among eight agreements signed during the conference, underscoring Saudi Arabia’s continued push for financial sector expansion and technological advancement. 

The Financial Academy and Saudi Tadawul Group also joined forces to launch specialized training programs tailored for the financial industry. 

The initiative, developed in collaboration with leading universities, will introduce the Sustainability Specialist in the Financial Sector certification and host workshops to deepen industry expertise. 

Awqaf Investment has signed two key agreements. The first, with SNB Capital, is aimed at serving the SR8 billion ($2.1 billion) Awqaf market, with a focus on developing improved investment products that cater to the sector’s needs. 

The second, an investment advisory agreement with Ehsan, will see Awqaf Investment Co. providing strategic advisory services for the Ehsan Waqf Fund, further strengthening the Kingdom’s philanthropic investment landscape. 

Saudi Arabia’s real estate market is also set to benefit from a new collaboration between Aljazira Capital and Target, as the two entities launch the Wahat Alnakheel Real Estate Fund — a major initiative with a fund size exceeding SR1 billion. 

Meanwhile, Dalipal Holdings Limited has partnered with Saudi investment firm BMG Financial Group to strengthen Dalipal’s presence in the Kingdom’s energy sector. The MoU leverages BMG’s regulatory expertise and investor network with Dalipal’s specialization in high-end energy pipes and seamless steel products. The collaboration could pave the way for a potential Dalipal listing on the Saudi Exchange. 

A significant trilateral partnership was also unveiled, with Wamid, Google Cloud, and Deloitte teaming up to develop and launch new capital market data products. The initiative positions Saudi Tadawul Group as a leader in financial innovation and digital transformation. 

Additionally, the Saudi Securities Depository Center Co., known as Edaa, has launched EDAA CONNECT, a centralized platform for mutual fund investments across the Saudi capital market. 

The initiative, developed in partnership with 11 financial firms — including Albilad Capital, AlRajhi Capital, and Rassanah Capital, as well as Saudi Awwal Bank Invest, and SNB Capital — aims to streamline fund access and enhance investment efficiency. 

Saudi Tadawul Group and its subsidiaries announced a series of strategic initiatives aimed at advancing the Saudi financial market.

The group unveiled the launch of the STG App, an integrated platform designed to unify all group services, streamline processes for investors, companies, and market participants, and simplify market access.