SNB Capital, Interactive Brokers tie-up to boost Tadawul liquidity

Loai Bafaqeeh, Head of Securities at SNB Capital

Loai Bafaqeeh, Head of Securities at SNB Capital, said the partnership signed with Interactive Brokers will positively impact the Saudi Exchange’s (Tadawul) liquidity.

In an interview with Argaam on the sidelines of SNB Capital’s contract signing with Nasdaq-listed Interactive Brokers, the senior executive indicated funds from outside the Kingdom will be invested in the Saudi market, which will boost liquidity.

The partnership aims to enable foreign investors in Europe, the US and other countries to trade and invest in the Saudi market, he noted.

Bafaqeeh further stated that the partnership enables unqualified individuals from outside the Saudi market worldwide and Interactive Brokers clients to enter and trade in Tadawul using the SWAP system recently permitted by the Capital Market Authority.

Tadawul has various conditions and requirements typical of strong markets, which boosts foreign investors’ interest in diversifying their personal investment portfolios, he added.

The official also pointed out that trading volume among qualified foreign investors (QFIs) in Tadawul surged to over 20% currently, up from just 3% to 5% two years ago.

The market's trading volume shows the strong turnout of foreign investors in the Saudi market, Bafaqeeh said, adding that volumes may reach 25%.

According to data available to Argaam, SNB Capital formed a partnership with Interactive Brokers, an automated global electronic broker, to allow eligible international investors to access Tadawul through the Interactive Brokers platform.

This alliance makes Interactive Brokers the first global broker to allow foreign clients to directly own and trade securities listed on Tadawul. Clients of Interactive Brokers can now invest in Saudi equities alongside global stocks, options, futures, bonds, funds, and more from a single unified platform.