The vistas ahead
Saudi Tadawul Group is evolving from being a national stock exchange, to being a regional and then a global exchange. In the process we are helping to create the future for the Kingdom, the Region and the World. Opening up to the world has been a journey and our ambitions are bounded only by those of our stakeholders. The global economic and financial scenario constantly presents new opportunities.
We are helping push boundaries and create new benchmarks across the board. The Exchange is cognizant of the needs of both large established corporates and those of rising stars with disruptive ideas which have been nurtured by capital investors. With cutting-edge technology, we are changing the way investment decisions are made; they are better informed, faster, and more reliable. In partnership with the global community we are helping all of them to move to the next level in exploiting the market’s potential. Further, as we invest in our people, we are helping exceptional talent chart their own personal growth story.
We intend to raise the bar, onwards and upwards. Moving together to push the limits of what’s possible. To take advantage of the opportunities before us, we revamped our business structures in keeping with changing needs.
The revamped strategic framework
In the process of realising the above-mentioned objectives, a holding company was formed, the "Saudi Tadawul Group", wholly owned by the Public Investment Fund which came into effect from 7 April 2021. This is referred to as the “Group”, the “Exchange”, “Tadawul” or the “Company” in this Report.
Saudi Tadawul Group in detail
The restructuring was accompanied by a rebranding of the entire Group which was formed, including the holding company and its subsidiaries as follows:
The Saudi Exchange is a newly established company in 2021, as a result of operational spin-off of the exchange activities from the Saudi Tadawul Group which shall act as a securities exchange in the Kingdom of Saudi Arabia. This provided a platform for trading securities listed on the market, thus contributing to the access of listed companies to financing and allowing traders to invest in the market.
The Exchange’s strategies are closely aligned with the goals of the Kingdom’s Vision 2030. Some of the shared goals include increasing the private sector’s contribution to the economy, drawing in more foreign investment, and growing the SME sector.
The Securities Depository Center Company, Edaa was established in 2016. Its main function is to maintain the Depository and Settlement System, which keeps a record of securities and tracks their ownership and actions while providing several other value added services.
The Securities Clearing Center Company, Muqassa, was formed in 2018. It acts as an intermediary in the trading process. Muqassa develops clearing services, reduces counterparty risk, increases market efficiency and became operational in 2020.
Tadawul Advanced Solutions Company
As part of Tadawul’s plans to further develop the Saudi Capital Market, and in line with the goals of the Kingdom’s Vision 2030 Financial Sector Development Program, the Exchange launched the new subsidiary, which is expected to become operational in 2021. The Company’s focus will be on technology, innovation, and data.