Saudi Tadawul partners with Shanghai Stock Exchange

Gulf Today, Staff Reporter

The Saudi Tadawul Group has announced the signing of a Memorandum of Understanding (MoU) with the Shanghai Stock Exchange to promote mutual development and cooperation between the two exchanges. The MoU was signed by Eng. Khalid Al Hussan, CEO of the Saudi Tadawul Group, and Cai Jianchun, President of the Shanghai Stock Exchange during the Shanghai Stock Exchange high delegation’s visit to Saudi Arabia.

As part of the MoU, the two Exchanges will explore opportunities in Cross-listing, Fintech, ESG, data exchange, and research, as well as promote diversity and inclusion in both markets. The MoU will also facilitate knowledge sharing in listing family businesses and SMEs, dual-listings of ETFs, and Investor Relations initiatives, while developing the infrastructure of both capital markets.

Speaking on the occasion, Khalid Al Hussan, CEO of the Saudi Tadawul Group said, “The MoU with the Shanghai Stock Exchange is an important step towards advancing the growth of the Saudi capital market and facilitate greater connectivity between Saudi Arabia and China. This is a testament to our shared commitment to promoting the development of capital markets, and we believe it will benefit issuers and investors in both countries.”

Cai Jianchun, President of the Shanghai Stock Exchange, said, “We are pleased to announce our MoU signing with Saudi Tadawul Group to explore potential opportunities in Fintech, ESG, and other areas of mutual interest. We look forward to working closely with the Saudi Tadawul Group to advance ETF and other product cooperation and further strengthen the cooperation between China and Saudi Capital Market.”

The MoU is part of Saudi Tadawul Group’s commitment to develop the Saudi Capital Market, which aims to diversify and enhance the Saudi capital market, placing it firmly on the global stage as the gateway to the MENA region for issuers and investors.

Founded in 2021 and headquartered in Riyadh, Saudi Tadawul Group is a holding company with a portfolio of four integrated subsidiaries: the Saudi Exchange, one of the largest 10 stock exchanges in the world by market capitalization, the Securities Clearing Center Company (Muqassa), the Securities Depository Center Company (Edaa), and Wamid, an innovative applied technology services business. Saudi Tadawul Group was established as part of a continuous development program focused on enhancing the capital market and its infrastructure, attracting foreign investments, and diversifying the Saudi economy. The Group reinforces Saudi Arabia’s position as an attractive global investment destination and the gateway to the MENA region.

Saudi Tadawul Group supports the development of an advanced capital market in Saudi Arabia; one of the pillars of the Financial Sector Development Program (FSDP), a Saudi Vision 2030 realization program.

Under the supervision and guidance of the China Securities Regulatory Commission, Shanghai Stock Exchange (SSE) was established on November 26, 1990, and started operations on December 19 of the same year. SSE is a membership legal entity that provides venues and facilities for centralized securities trading, organizes and supervises securities trading, and implements self-discipline management. After more than 30 years of development, SSE has grown into a comprehensive, open and service-oriented exchange. With a complete market structure, SSE provides products of stocks, bonds, funds and derivatives; has trading systems and communications infrastructure which can support the efficient and stable operation of the Shanghai securities market; and has an effective self-regulatory system which can ensure the regulated and orderly operation of the Shanghai securities market. At present, SSE has become the third largest securities exchange in the world and one of the most active securities exchanges in the world. As the end of 2022, SSE ranked 3rd and 1st respectively in terms of total market capitalization and capital raised in the world.

Meanwhile, Daniel Takieddine CEO MENA at BDSwiss told Gulf Today that GCC stock markets recorded mixed performances with traders reacting to the developments in oil markets while expectations regarding the Federal Reserve monetary policy and China also affected sentiment.

The Dubai stock market continued to see some pressure near resistance levels but remains close to this year’s highs. The main index could be exposed to some price corrections over the short term although it still maintains its strong uptrend overall.

The Abu Dhabi stock market recorded stronger volatility after a period of stagnation. The market could remain exposed to the developments in the energy markets with oil in particular rebounding during the last few sessions. However, a negative reversal in crude markets could weigh on sentiment.