Saudi Capital Market Authority (CMA) announced on Sunday the listing of debt instruments issued by the government, in a move that is expected to open up new investment opportunities for various segments. In this regard, CMA Board has issued its resolution approving the listing request of the debt instruments issued by the government of the Kingdom of Saudi Arabia submitted by the Ministry of Finance with a total value of $54.5 billion. CMA’s approval comes from its program “Financial Leadership 2020” to achieve Vision 2030, and in an endeavor to develop the debt instruments market, and in order to introduce financial instruments that serve the needs of different investor categories. In this regard, given the details of government debt instruments approved by the CMA, these instruments vary between Floating Rate Debt Instruments, Fixed Rate Debt Instruments, and Saudi Government Sukuk. Saudi Arabias Tadawul offers a wide range of services to all investors. It currently uses one of the most sophisticated trading systems that creates a smooth trading experience through integrated operation and direct processing, including the Sukuk and bond platform. Transactions are matched, confirmed, executed and settled electronically within two business days. Tadawul’s trading website is designed to serve multiple orders that meet the needs of investors. Tadawul also provides trading services outside the platform for private Sukuks and bonds and supports floating rate and fixed rate bonds as well as bonds without interest. Securities Depository Center Company (Edaa) is the sole entity in Saudi Arabia responsible for providing securities deposit, settlement, clearing and registering ownership of Securities traded on the Tadawul. The principal activities of Edaa is to operate and maintain the Depository and Settlement System (DSS), which is an electronic book-entry system used to record and maintain securities and to register the ownership of securities. In this regard, Saudi’s program to develop the financial sector, announced as part of Vision 2030, has become an important step towards the development of the local capital market and placing it among the top 10 financial markets in the world. The program aims to improve the experience of operators and users and the status of the Saudi capital markets on the regional and international levels so they become the major market in the Middle East and one of the 10 major markets in the world. It also aims to develop Saudi capital markets in order to attract local and foreign investments and thus perform a pivotal role in developing national economy and diversifying its income resources. It includes as well, the development of financial institutions, such as public and private funds, banks and insurance companies to improve their role in supporting the growth of the private sector.
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