The Saudi Exchange announced the launch of the Saudi Depositary Receipts (SDRs), introducing a new financial instrument that provide investors in the Saudi Capital Market with ease of access to shares of listed foreign companies in global capital markets. This milestone marks another significant step in positioning the Saudi market as a leading global financial hub.

Saudi Depositary Receipts facilitate investor access to foreign companies listed on other exchanges, with the ability to trade and settle in Saudi Riyals. In addition, SDRs offer liquidity and flexibility, facilitating the transfer of the security between the Saudi Capital Market and the foreign exchanges by enabling the conversion of the SDR into shares in the foreign exchange, which provides the opportunity to trade the company’s shares in two different exchanges.

On this occasion, Mohammed Al-Rumaih, CEO of the Saudi Exchange, said: “The launch of SDRs represents a major milestone in our efforts towards fostering the Saudi Capital Market’s position as a global financial hub. Through this recently introduced financial instrument, we are offering investors the opportunity to engage with global businesses and diversifying the investment landscape. We will maintain our commitment to advancing the competitiveness of the Saudi Capital Market and creating new opportunities for investors and issuers.”

Hanan Al Shehri, CEO of the Securities Depository Center Company (Edaa), said: “By leveraging recent enhancements from our post-trade infrastructure enhancement program, including Edaa’s straight-through processing and streamlined communication systems, we have established a robust framework that further supports financial instruments registration. The launch of SDRs demonstrates our dedication to supporting the dynamism of the Saudi Capital Market on a regional and global level.”

The introduction of SDRs marks a significant milestone in the Saudi Exchange’s mission to enhance capital market accessibility and expand investment opportunities for investors in the Saudi market. This initiative aligns with the Financial Sector Development Program (FSDP) under Saudi Vision 2030.

Source: Saudi Exchange