Saudi bourse to launch derivatives market on Aug. 30, eyes more products


By Marwa Rashad and Hadeel Al Sayegh

RIYADH, July 14 (Reuters) - The Saudi Stock Exchange said on Tuesday trading in the kingdom's first exchange-traded derivatives product would start on Aug. 30, part of moves to make the Saudi equity market more attractive to foreign investors.

Tadawul said the Saudi Futures 30 (SF30) Index Futures Contract was based on the MSCI Tadawul 30 (MT30) Index, and would give investors hedging tools and more opportunities to gain exposure to the Saudi capital market.

Tadawul CEO Khaled al Hussan said the product would make the Saudi stock market more attractive, especially to foreign investors.

Saudi authorities have introduced a raft of reforms to attract overseas share buyers and issuers as part of efforts to lure foreign capital and diversify the oil-dependent economy.

In 2019, the Saudi market joined the FTSE Emerging All Cap Index and the MSCI Emerging Markets Index, triggering more foreign fund inflows.

The Saudi bourse plans to launch other derivatives-related products, like options, and complete the whole system by the end of 2021 and start of 2022, said Wael al-Hazzani, Chief Executive Office of the Securities Clearing Center Co.

Tadawul's al Hussan told a virtual news conference the outbreak of the novel coronavirus had not significantly affected trading on the Saudi stock market, with volumes higher than last year.

The benchmark stock index .TASI is down 12% this year as the Saudi economy has been hurt by lockdowns imposed after the virus outbreak and a slump in oil prices.

(Reporting by Marwa Rashad and Hadeel Al Sayegh; Writing by Saeed Azhar; Editing by Mark Potter )

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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