Edaa prioritizes debt market, comprehensive services: CEO

Hanan Alshehri, CEO of the Securities Depository Center (Edaa)

Hanan Alshehri, CEO of the Securities Depository Center (Edaa), said the debt market is vital to Saudi Arabia’s financial sector, making its development a strategic priority for Saudi Tadawul Group.

Edaa collaborates with the Saudi Exchange (Tadawul) and the Capital Market Authority (CMA) to equip issuers and investors with essential tools and systems.

Alshehri told Argaam on the sidelines of the 2025 Capital Markets Forum (CMF) that the center oversees post-trade operations, particularly securities settlement, in coordination with Securities Clearing Center Co. (Muqassa), which handles clearing.

Edaa also provides advanced technologies for custodians, aligning with international standards to streamline portfolio management.

She added that Edaa is building a comprehensive infrastructure to support listed firms, offering services such as IPO processing, capital adjustments, M&A transactions, and e-voting in general assemblies.

The center also serves unlisted companies, managing shareholder records for about 110 firms, enabling them to access Edaa’s services ahead of potential listings.

Edaa has launched several complementary products, including securities lending that facilitates short selling. Omnibus accounts were introduced in the debt market as part of its development strategy, with plans to expand them to equities in the coming months.

Among its key initiatives, Edaa introduced omnibus accounts to bolster the debt market and established links with global depositories in 2021 to enhance foreign investor access, particularly to government debt issuances. It also offers flexible settlement cycles, ranging from same-day (T+0) to five-day (T+5) settlements, providing greater flexibility for negotiated deals.

These efforts, carried out in collaboration with regulators such as the CMA, Tadawul, and Muqassa, aim to enhance market efficiency and attract local and international investors.

Alshehri highlighted Saudi Arabia’s capital market as one of the fastest-growing globally in terms of new listings. She also announced the launch of Edaa Connect—a strategic platform designed to facilitate investor access to publicly offered investment funds.

Initially hosting around 25 funds, Edaa Connect aims to improve subscription and redemption processes, with plans to expand its offerings and enhance investor experience by bridging the gap between investors and fund managers.