Driven by Vision 2030, the exchange plans a major product expansion, leveraging cutting-edge tech to attract global capital and deepen market liquidity.
RIYADH – In a major strategic push, the Saudi Stock Exchange (Tadawul) is gearing up to unveil a suite of advanced financial products, targeting the debt, derivatives, and data segments. This initiative marks a pivotal step in the market’s evolution, aligning with its rapid integration into global finance and the Kingdom’s broader economic transformation.
Khalid Al-Hussan, CEO of Tadawul Group, revealed the plans in an exclusive discussion with Asharq Bloomberg, describing the current period as the market’s most dynamic in decades. “We are in a race to innovate,” Al-Hussan stated, outlining a future-ready strategy that includes “debt instruments, derivatives, and data,” all supported by an upcoming “digital expansion phase reliant on AI and blockchain.”
Unprecedented Expansion and Global Integration
The ambitious product roadmap builds on a phase of explosive growth for Tadawul. From just 100 listed companies eight years ago, the market has swelled to over 380 today, boasting a total market capitalization north of $2.5 trillion. This surge has been fueled by over $130 billion raised through IPOs since 2018, alongside the maturation of its debt and ETF sectors.
This robust development has not gone unnoticed internationally. Foreign investment has become a cornerstone of market liquidity, with ownership levels hitting $110 billion and the number of registered foreign investors climbing to over 4,400. Al-Hussan emphasized that inclusion in global indices is the ultimate validator of the market’s standards, a milestone Saudi Arabia has successfully achieved.
Strategic Pillars for a Deepened Market
The next phase of growth will be structured around three core areas:
- Turbocharging the Debt Market: A primary objective is to energize the debt capital market, vital for funding both government initiatives and corporate expansion. Efforts will concentrate on enhancing the secondary market to improve liquidity and trading activity.
- Expanding the Derivatives Universe: Tadawul is overhauling its derivatives infrastructure to introduce a new range of products. These instruments are designed to provide investors with sophisticated tools for risk management and to further invigorate underlying market liquidity.
- Monetizing Data Intelligence: Moving beyond traditional services, the exchange is cultivating data as a critical asset class. Significant investments have been made to transform market data into a key resource for investors and a competitive advantage on the world stage.
A Technologically Empowered Future
Underpinning this product expansion is a strong technological drive. Through its subsidiary Wamid, Tadawul is aggressively exploring disruptive technologies, including blockchain for digital assets and AI for market analytics. The acquisition of DirectFN and numerous international tech partnerships underscore its commitment to becoming a digitally-native exchange.
Capitalizing on Global Economic Shifts
Al-Hussan positioned these developments within a wider global context, noting a “major repositioning” of investment flows towards the Middle East and Asia. Factors like shifting economic weight and changing monetary policy are enhancing the Kingdom’s appeal, placing Tadawul at the forefront of a capital shift from mature markets to high-growth emerging economies.
Reflecting on the market’s journey, Al-Hussan firmly linked its success to the national agenda, stating that the growth since the launch of Vision 2030 is undeniable proof that the market accurately mirrors the Kingdom’s economic vitality.
