Market Overview

The Saudi Stock Exchange (Tadawul) Launches Derivatives Market In The First Half Of 2019


The Saudi Stock Exchange (Tadawul) Launches Derivatives Market In The First Half Of 2019

PR Newswire

RIYADH, Saudi Arabia, Sept. 4, 2018 /PRNewswire/ -- The Saudi Stock Exchange (Tadawul) will introduce exchange-traded derivatives in the first half of 2019. Tadawul will launch an index futures contract based on the tradeable index jointly developed with MSCI.  Saudi Arabia's inclusion into the major emerging markets indices further validates the need for this market. Tadawul is planning to launch additional derivative products gradually as part of its strategy to diversify its product offering and provide more investment opportunities for market participants.


"The introduction of derivatives is part of the Vision 2030 Financial Sector Development Program. This reflects Tadawul's ongoing commitment to create new opportunities for investors and to increase institutional investors' participation in the Saudi market," said Khalid Al Hussan, Chief Executive Officer of Tadawul.

He added: "With the Kingdom's impending inclusion in major international indexes and the successful implementation of a wide array of enhancements to develop the market and align Saudi regulatory frameworks with global best practices, the launch of a derivatives market is the natural next step towards an advanced capital market. Derivatives enable efficient price discovery of our securities in the home market."

The planned launch of a derivatives market in Saudi Arabia follows on recent significant market developments, including the commencement of the Central Counterparty Clearing House ("CCP") to develop future clearing services, rolling out the T+2 settlement cycle, introducing securities borrowing and lending, as well as covered short-selling frameworks for the first time in the region.

About Tadawul

Saudi Stock Exchange (Tadawul) is the sole entity authorized in the Kingdom of Saudi Arabia to act as the kingdom's securities exchange (the Exchange), listing and trading in securities. The Saudi stock market is the 23rd largest stock market among the 68 members of the World Federation of Exchanges and is the dominant market in the Gulf Cooperation Council (GCC) comprising 50.1 percent of total GCC market capitalization and 79 percent of value traded. The Exchange is the 8th largest stock market amongst its emerging market peers.

For more information see:

Tadawul Contact:
Mohammed Al Abdullah
+966 54 541-1133

Media Contacts:
Amy Rosenberg
Hill+Knowlton Strategies 
+1 212 885 0581

Andrew Bone 
+966 509 995 393

Meshari Abokhodair 
+966 56 626 0601

Cision View original content with multimedia:

SOURCE Tadawul

View Comments and Join the Discussion!