Tadawul among world’s five best performing capital markets

Tadawul All Share Index (TASI) recorded a growth of 8.3 percent in 2018 year-on-year, putting the Saudi Stock Exchange (Tadawul) among the top five stock markets in the world in terms of the benchmark index’s percentage growth.

This is according to Tadawul’s 2018 annual report released on Sunday that highlighted its performance and major achievements.

The report noted that Tadawul’s gross profit increased by 14 percent compared to the year before, reaching SAR 285 million.

Operating revenue increased by 6.9 percent to SAR 583 million, while operating profits increased 29.2 percent.

In 2018, Tadawul was upgraded to emerging market status and has been included in three preeminent global index providers – MSCI, FTSE Russell and S&P Dow Jones, the annual report added.

The report also highlighted the rise in the number of Qualified Foreign Investors (QFIs) from around 100 at the start of the year to almost 500 at the end, an increase of 400 percent.

Total market capitalization of Tadawul grew 10 percent in 2018, spurred in part by the addition of 12 new listings, which increased the total number of listed companies to 190.

Tadawul also announced the establishment of a Securities Clearing Center Company (Muqassa) and the launch MSCI Tadawul 30 (MT30) index.

This paves the way for introducing derivatives, one of the initiatives under the Financial Sector Development Program (FSDP) Kingdom's Vision 2030, the annual report added.

“With the introduction of the MSCI Tadawul 30 Index and derivatives market, Tadawul continues to build on its commitment to create new opportunities for issuers and investors and to lead capital market development in the GCC and MENA region,” the report maintained.

Turning to the future, Tadawul has embarked on a new five-year strategic plan in 2018, the report continued, adding that it is built on a structure comprising seven pillars that includes introducing a wider pool of products and markets, in addition to developing the market infrastructure and enhancing its effectiveness and information.