Since entering two emerging market indices, Saudi Arabia has leaped from the starting block with the planned launch of a new derivatives market. A Deutsche Bank-hosted webinar took stock of what investors can look forward to as the country sprints ahead in 2019
It has been almost three years since Saudi Arabia unveiled its vision to make the country less dependent on oil and to diversify its economy. As part of Vision 2030 1 , a government plan to turn the country into an investment powerhouse, Saudi Arabia has been diligently implementing a number of domestic reforms and market liberalisation policies. These have included the creation of a central securities depository and the introduction of securities lending and borrowing. And there is more to come in 2019, with this being a pinnacle year in the country’s journey.
In keeping with this momentum, the next 12 months are poised to be equally fruitful for Saudi Arabia’s capital markets with the launch by the Saudi Stock Exchange (Taduwul) of a derivatives market in the first half of 2019 2 and pipeline of highly anticipated IPOs. Setting the scene at the start of a market outlook webinar, Manoj Aidasani Head of Securities Services Gulf Cooperation Council (GCC) at Deutsche Bank said: “2019 is an important year in the journey of the Saudi Arabia capital market reforms - it shall be marked as the year of transformation to an emerging market”. The market appears to support Aidasani’s sentiment; the Tadawul All Share Index advanced to over just over 8,600 on February 18, 2019, up from closing 7,826 at the end of 2018.
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