The Saudi Stock Exchange (Tadawul), the Arab world’s biggest bourse, is open to selling a stake to an international exchange, a move it would consider based on the added value to the US$440 billion bourse, its chief executive said.
"The exchange won't take this step unless it is 100 per cent value added to Tadawul," Khalid Al Hussan told The National in Riyadh. "We believe that we are big as far as this region [is concerned], most liquid, so if we are going to add the element of an exchange to our exchange, it should be a clear added value and just not because we need to attach our name to a big exchange."
Tadawul is home to one of the world’s top petrochemical’s producers, Saudi Basic Industries Corporation (Sabic), and the kingdom’s financial sector heavyweights such as Al Rajhi Bank and National Commercial Bank. It is preparing to host Saudi Aramco next year on its trading platform, when the state-controlled oil producer sells shares to the public in what is slated to be the biggest IPO in the history.
Tadawul, which expects its market capitalisation to climb beyond US$1 trillion in the next five years, according to Mr Al Hussan, has received interest from international exchanges in the past but is not engaged in ongoing discussions at moment.
“There have been discussions not an actual offer,” he said. “We are open always. I mean, every exchange is open to look at this if there is a trigger of added value,” he said, noting that some of the past transactions between the exchanges, however, have led to questions in terms of their success.
Saudi Arabia, the region’s biggest economy and the Opec’s top oil producer, is trying to transform its economy to cut its dependence on the sale of hydrocarbons to generate revenues. Development of the country’s capital market is part of Riyadh’s overhaul agenda.
Tadawul, which started allowing foreign qualified investors limited access to listed equities in 2015, is gradually easing rules as it pursues its “target operating model” through amending its operations and regulations. Changes already made or about to be introduced include new corporate governance rules; adoption of the industry standards used to group companies by industry; settlement cycles; and enabling foreign investors to participate in share floats.
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“I think the reforms today being undertaken by the capital market will position Tadawul differently in the next three to five years,” Mr Al Hussan said.
The next step, he said, is setting up a clearance house that will look at both equity and derivatives trade in the kingdom.
“With this we will have the whole value chain of any capital market or any exchange business – trading, which is the exchange, the securities depository centre which is already a subsidiary of Tadawul and the clearing house,” he said adding that with that infrastructure the exchange will be able to introduce more sophisticated products.
Tadawul is already speaking with many clearing houses to ensure it fully understands the requirements of investors and the market participants, as it is building the set up to suit the demands of the exchange rather than following a text book model.
“We have a relationship with clearing houses and we are speaking to exchanges and established derivatives markets as well,” Mr Al Hussan said. Tadawul, which is preparing for its own IPO, is on track to achieve “readiness” for the public float that will make it only the second listed bourse in the region after the Dubai Financial Market.
“The progress is as per plan,” he said, declining to give a timeline as to when the IPO can take place and noting that the final decision will be taken by the Public Investment Fund, which is the sole owner of the bourse.
“The prerequisite is the decision by the shareholder, like any other company that is going public.”
Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
The%20specs
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Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
- Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
- Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
More on animal trafficking
Heather, the Totality
Matthew Weiner,
Canongate
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
Easter%20Sunday
%3Cp%3EDirector%3A%20Jay%20Chandrasekhar%3Cbr%3EStars%3A%20Jo%20Koy%2C%20Tia%20Carrere%2C%20Brandon%20Wardell%2C%20Lydia%20Gaston%3Cbr%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
Stamp duty timeline
December 2014: Former UK finance minister George Osbourne reforms stamp duty, replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:
Up to £125,000 - 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; Over £1.5m – 12%
April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.
July 2020: Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.
March 2021: Mr Sunak decides the fate of SDLT holiday at his March 3 budget, with expectations he will extend the perk unti June.
April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.
Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
DC%20League%20of%20Super-Pets
%3Cp%3EDirector%3A%20Jared%20Stern%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Dwayne%20Johnson%2C%20Kevin%20Hart%2C%20John%20Krasinski%2C%20Keanu%20Reeves%2C%20Olivia%20Wilde%2C%20Kate%20McKinnon%2C%20Jameela%20Jamil%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”