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Market status. In 2018, Tadawul gained inclusion in For SSR:
all three of the preeminent global benchmark indices
– MSCI, FTSE Russell and S&P Dow Jones. Foreign 1. The investment limits and monitoring process
investment inflows resulting from index inclusion will will be clarified.
further support liquidity in the Saudi Capital Market,
which is already among the most liquid emerging 2. Natural persons can participate in SSR.
markets in the world, and diversify opportunities for
issuers and investors alike, contributing to greater The above changes are subject to final
market maturity and stability. regulatory approval.

Internationally, the promotion to EM status marks a The proposed changes are expected to expand
key milestone for Saudi Arabia and rewards the depth participation of SBL and SSR to a wider group of
and pace of reform that has taken place within the investors and intermediaries and will further enhance
Kingdom’s capital market. the market’s efficiency and liquidity. The SBL and SSR
The Kingdom of Saudi Arabia Set proposals are part of a larger objective of Tadawul
Since inception of the program, more than 1300 to become an active player in global capital markets,
For Capital Markets Expansion international financial institutions have joined the thus becoming an attractive investment destination,
building on its current role as the regional hub leading
Qualified Foreign Investors (QFI) program with hundreds
more at various stages in the qualifying process. We capital market development in the GCC and the
expect that Saudi Arabia’s recent inclusion in emerging wider MENA region.
market indices of all of the global index providers to
The Kingdom of Saudi Arabia (a G20 member) is by far Tadawul is the largest equity market in the GCC and further increase interest in the program.
the largest economy in the GCC and MENA regions MENA regions, the seventh largest emerging market Mohammed Al-Rumaih has extensive
with a GDP of $678 billion, high rates of investment and the 24th largest stock market in the world within the In 2017, Tadawul introduced its Securities Borrowing experience in the financial sector, where
and stable monetary and exchange rate policies. World Federation of Exchanges members. Moreover, and Lending (“SBL”) and Short Selling Regulations he has successfully led several roles and
Demographically, KSA population has reached 33.4 Tadawul is home to more than 200 Saudi companies (SSR) framework. Recently, in June 2019, Tadawul responsibilities. Over the past 10 years in the
million in 2019 with nearly 60% of Saudis below 30 with a combined market capitalisation of more than issued a Consultation Paper on proposed changes to Saudi Stock Exchange, he has successfully
years of age and an urbanization rate of 80%. $548 billion. Tadawul is considered highly liquid with an the SBL and SSR frameworks. The key proposals in the led various sales and marketing activities.
average daily trading value of approximately $1 billion Consultation Paper were as follows: Mohammed holds a Bachelor degree in
In 2016, the Saudi government initiated Vision 2030, YTD, and offers exposure to a diversified portfolio of Management Information Systems from King
a comprehensive agenda of socio-economic reforms asset classes covering 20 sectors. For SBL: Fahd University of Petroleum & Minerals,
which is transforming the Saudi economy and is and holds an MBA from the Manchester
creating unprecedented investment opportunities. From a regional perspective, Tadawul accounts for 1. The existing requirement that Lenders and/or Business School.
69.1% of the combined market capitalisation and more Lending Agents must be a custody member of
Capital market reform is one of the main pillars of Vision than 76% of the combined trading value of all GCC the Securities Depository Centre (SDC) proposed
2030 and has been a linchpin in unlocking economic Exchanges as of July 2019. be replaced with the requirement that Lenders/
and investment potential. Lending Agents must either be a custody member
Over the past three years, Tadawul has implemented of the SDC or appoint a custody member of the
Far-ranging reforms undertaken by the Saudi Stock numerous measures to enhance the effectiveness of the SDC to facilitate the SBL.
Exchange (Tadawul), the Kingdom’s sole authorised Saudi Capital market, foster an attractive investment
securities exchange, in conjunction with the Capital environment for local and international investors and 2. The existing requirement that Borrowers must be
Market Authority (CMA) have improved market function align its regulatory frameworks with international a custody member of the SDC proposed to be Mohammed
and efficiency, expanded access, enhanced corporate best practices. replaced with the requirement that Borrowers must Sulaiman Al Rumaih
governance, and increased transparency, further either be a custody member of the SDC or appoint Chief of Markets
aligning the Saudi capital market with international These measures have paved the way for fulfillment of a custody member of the SDC to facilitate the SBL. Saudi Stock
standards and making it more attractive to both the varying criteria used by the global index providers Exchange (Tadawul)
domestic and foreign investors. to reclassify KSA from Standalone Market to Emerging 3. Natural persons can be a Lender and Borrower.

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