Financial derivatives, SSFs enhance Tadawul liquidity, investor base: BNY Mellon

He added that BNY Mellon has a positive outlook in this regard.

There are several reasons that help Tadawul attract foreign investors, including the SAR peg to the US dollar and basic commodities, in addition to the market’s high ranking on the MSCI Emerging Markets Index, Fernandes said.

He indicated that the development of SSFs and financial derivatives market in the Kingdom reflects improvement to the local stock market, noting that Tadawul plans to implement the best international practices.

On the other hand, Hani Kablawi, Chairman of International Department at BNY Mellon, said the Saudi bourse became an important investment destination for foreign investors after diversifying its investment products and launching clear rules.

Moreover, changes in the Saudi market enabled investors further amid the application of similar settlement rules in global markets and the introduction of new products, such as derivatives and short-selling.

He added that these changes came after consulting with global investors to ensure that the local market is able to provide efficient product solutions, as is the case with global institutional investors and investment managers in other markets.

Kablawi added that BNY Mellon aims to overcome obstacles that might hinder global investors’ market access. The main goal behind the roadshow organized with the Ministry of Investment, Saudi Tadawul Group Holding and SNB Capital in the UK was to ensure that international clients realize that investment in the Saudi market is easy in terms of infrastructure.