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Saudi Exchange Launches the Saudi Depositary Receipts (SDRs) for the First Time in the Saudi Capital Market
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.
The Saudi Depositary Receipts (SDRs) 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 exchange by enabling the conversion of the SDR into shares in the foreign exchange, providing the opportunity to trade the company’s shares in two different exchanges.
To learn more about SDRs, please click here: LINK
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The Capital Market Authority Approves the Regulatory Framework for the Issuance of Depositary Receipts in the Saudi Capital Market Corresponding to Foreign Shares
The Capital Market Authority's (CMA's) Board approved the regulatory framework for the offering of Saudi depositary receipts in the capital market representing shares issued in a foreign country and listed on its capital market, to be effective as of the date of its publication. The approval of this regulatory framework aims to introduce a new security through the regulation of issuing depositary receipts in the capital market for shares listed in a foreign market, contributing to the deepening of the Saudi capital market and enhancing its role in capital formation, while also increasing its attractiveness by providing additional listing options and diversifying investment products. According to the approved regulatory framework, the CMA will allow foreign companies to register and offer depositary receipts in the Saudi capital market representing their shares listed in foreign markets, upon obtaining the required approval. In line with the adopted framework, the requirements for registering and offering depositary receipts will follow the requirements for registering and offering shares currently in place under the Rules on the Offer of Securities and Continuing Obligations. The issuer of the Saudi depositary receipts will also be subject to the same continuing obligations applicable to a foreign company that lists its shares on the Main Market under the Listing Rules, subject to certain exceptions. In 2020, the Capital Market Authority allowed companies listed on the local capital market to issue certificates of deposit outside Saudi Arabia in exchange for their shares traded in the Saudi capital market. This move aims to strengthen the pillars of Saudi Vision 2030, which seeks to make the Saudi capital market attractive to both local and foreign investors. Consequently, it is now allowed to offer depositary receipts to foreign companies in exchange for their issued shares in a foreign market. The approval of the Amendments came following the CMA's publication of the draft of “The Draft Amendments to Regulate the Offer of Depository Receipts in the Saudi Capital Market" on the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform) affiliated to the National Competitiveness Center and the CMA's website for public consultation for a period of (30) calendar days. The amended Rules on the Offer of Securities and Continuing Obligations and the amended Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority can be accessed through the following links: Rules on the Offer of Securities and Continuing Obligations Glossary of Defined Terms Used in The Regulations and Rules of the Capital Market Authority It is also worth noting that, following the adoption of the regulatory framework, the Saudi Exchange (Tadawul) and the Securities Depository Center Company (Edaa) have announced the publication of the amended the Exchange Rules and Procedures, which can be accessed through the following link: The amended Exchange Rules and Procedures
07/07/2025 18:13:48 -
The Capital Market Authority Licenses Osool & Bakheet Investment Company to Conduct Arranging Activity in the Securities Business and its Completion of the Commencements of Business Requirements
In accordance to the Capital Market Law issued by Royal Decree No. (M/30) 02/06/1424 H dated and its Implementing Regulations, the Capital Market Authority announces that Osool & Bakheet Investment Company has completed the business commencements requirements to conduct Arranging activity in the Securities Business licensed as per CMA approval dated 18/04/1445 H corresponding to 02/11/2023 G.
07/07/2025 17:58:21 -
Saudi Exchange Company and The Securities Depository Centre Company (Edaa) announces the approval of the Amended Exchange Rules and Procedures.
The Saudi Exchange Company and The Securities Depository Centre Company (Edaa) announces the issuance of the Capital Market Authority Board resolution dated 21/11/1446H corresponding to 19/05/2025G approving the following: • The Amended Glossary of Defined Terms Used in the Exchange Rules (Click here). • The Amended Listing Rules (Click here). • The Amended Securities Depository Centre Rules (Click here). And the issuance of The Saudi Exchange Company Board of Directors resolution dated 12/10/1446H corresponding to 10/04/2025G approving the following: • The Amended Trading and Membership Procedures (Click here). In addition, the Securities Depository Centre Company (Edaa) announces the issuance of its Board of Directors resolution dated 12/10/1446H corresponding to 10/04/2025G approving the following: • The Amended Depository Centre Procedures (Click Here). The Amendments to Exchange Rules and Procedures are aimed to enable local and international investors to trade Saudi Depositary Receipts representing the underlying foreign shares. This provides foreign issuers with the opportunity to offer and list Saudi Depositary Receipts representing their shares on the Saudi Exchange, by appointing a local depositary institution (Capital Market Institution authorized by the Authority to carry out the securities activity of custody). This framework is expected to provide further flexibility for issuers and additional investment opportunities for both local and international investors. It should be noted that the Amended Rules, Procedures and Glossary shall be effective starting from its publishing date.
07/07/2025 15:52:32 -
Saudi Exchange Launches the Saudi Depositary Receipts (SDRs) for the First Time in the Saudi Capital Market
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. The Saudi Depositary Receipts (SDRs) 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 exchange by enabling the conversion of the SDR into shares in the foreign exchange, providing the opportunity to trade the company’s shares in two different exchanges. To learn more about SDRs, please click here: LINK
07/07/2025 15:40:34 -
The CMA Approves Regulation for the Enforcement of Close-Out Netting and Related Financial Collateral Arrangements in the Event of Default by Qualified Financial Contract Parties
The Capital Market Authority's (CMA's) Board approved the Close-out Netting and related Collateral Arrangements Regulation, which aims to regulate netting agreements and their related financial collateral arrangements where one of the parties is a capital market institution. The regulation will take effect as of its publication date. The regulation primarily aims to enhance the stability of the financial system and protect investors by ensuring the enforceability of a qualified financial contracts involving a capital market institution in the event of default by either party. This framework is designed to safeguard the rights of all parties involved, in accordance with the provisions outlined in the netting agreement between them. The approved provisions outline measures for handling the default of a party to a netting agreement or other specific cases outlined in the regulation, provided that one of the parties involved is a capital market institution. The aim is to regulate these agreements and related financial collateral arrangements linked to one or more qualified financial contracts that fall under the regulatory oversight of the CMA. This ensures the enforceability of such agreements for all parties, even in the event of any changes to the conditions under which the qualified financial contract was originally executed. Ultimately, this contributes to strengthening the stability and sustainability of the financial sector in Saudi Arabia and enhancing the overall capital market framework. The approved regulation includes several provisions governing close-out netting and associated collateral arrangements, along with definitions of key terms outlined in the regulation. It also sets out financial collateral arrangements, specifies the scope of application, identifies the entities subject to the regulation, and defines qualified financial contracts and transactions that would be exempt from the provisions of the Bankruptcy Law. The CMA also seeks, through approved regulation, to keep pace with international developments in accordance with the best global practices, especially in light of the interest of the International Swaps and Derivatives Association (ISDA), which has issued many guidelines and models to enhance Close-Out Netting practices and legislation in different countries, to confirm the enforceability of qualified financial contracts, and not to be affected by any subsequent change in the status in which they were concluded, which may include the opening of any bankruptcy procedures, and to ensure the implementation of the provisions and terms contained in those contracts. On February 24, 2025, the Capital Market Authority published the “The Draft Regulatory Framework for Close-Out Netting for Capital Market Institutions" on the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform) affiliated to the National Competitiveness Center and the CMA's website for public consultation for a period of (30) calendar days. The Close-out Netting and related Collateral Arrangements Regulation can be accessed through the following links: The Close-out Netting and related Collateral Arrangements Regulation
03/07/2025 18:39:52