Edaa CEO says Clearstream link to boost foreign investor access to listed sukuk, bonds, ETFs

Raed Al-Humaid, CEO of Edaa

The linkage between the Securities Depository Center Co. (Edaa) and Clearstream will raise the number of foreign investors and boost capital inflows to the Saudi market, chief executive officer (CEO) Raed Al-Humaid told Argaam in an exclusive.

The capital inflows generated from this linkage will boost the liquidity of the sukuk and bonds market, and exchange-traded funds (ETFs) listed on the Saudi Exchange (Tadawul). The connection will also provide larger finance opportunities for issuers of debt instruments.

The linkage allows clients to access sukuk and bonds as well as ETFs only, not stocks, Al-Humaid affirmed.

Meanwhile, the Saudi-listed sukuk and bond issuances reached over SAR 100 billion and the linkage will facilitate foreign investor to access the market without any need for local brokers, he concluded.

Edaa opened connection of the Saudi capital market to the network of Clearstream, the post-trading services provider of Deutsche Börse Group, today, June 14.