Tadawul easing QFI rules for Aramco listing, says CEO

The Saudi Stock Exchange (Tadawul) is easing regulations to allow foreign investors to trade on the bourse, in order to facilitate the initial public offering (IPO) of Saudi Aramco, Reuters reported, citing Tadawul CEO Khalid Al Hussan.

On Wednesday, Tadawul said it would update its independent custody model (ICM) to enhance Qualified Foreign Investor (QFI) access to the market by providing more flexibility in trading limits.

The announcement came a day after Capital Market Authority, the market regulator, said it was easing requirements for foreign institutions to qualify as investors.

“These changes are required by the growth of the market and what international institutions tell us,” Al Hussan said.

Commenting on the upcoming Aramco IPO, he said the exchange is taking all necessary measures to be ready for Aramco IPO and has received no word of any decision by authorities on foreign listing venues.

Saudi Arabia aims to sell about 5 percent of the oil giant, potentially raising $100 billion this year in what is expected to be the world’s largest IPO. New York, London, Hong Kong, Toronto, Singapore and Japan stock exchange are among several global bourses vying for the lucrative listing. 

Meanwhile, Al Hussan said that Tadawul’s plans to go public by the end of this year are underway, adding that the Saudi market will see more entrants to the main or parallel market.