RIYADH: A package of incentives is to be offered to Saudi companies to list on the Riyadh-based stock market, with more initial public offerings (IPOs) expected next year, according to the CEO of the exchange. The Saudi Stock Exchange, known as Tadawul, expects IPOs to pick up next year, its chief Khalid Al-Hussan told Reuters, while the launch of stock index futures should bring an influx of money from overseas.
Al-Hussan said authorities were working on several initiatives including a package of incentives for local companies to list.
So far this year, the Tadawul — which has a capitalization of around $490 billion — has seen one IPO on the main market and one on the parallel Nomu market.
“The application pipeline of new listings, both in Nomu and the main market today, is very healthy,” Al-Hussan told Reuters.
He was speaking as the Tadawul announced the signing of an agreement with global index provider MSCI to jointly launch a tradable index later this year.
The move is set to serve as the basis for investment instruments including derivatives and exchange-traded funds (ETFs), executives said in Riyadh.
The index will be open to both domestic and international investors, and follows the announcement that the Tadawul is to be upgraded by MSCI to “emerging market” status, in a move tipped to see billions of dollars of foreign investment flood into the market from 2019.
“The joint tradable index will be available in the fourth quarter of 2018,” Al-Hussan told reporters.
“The establishment of this index provides a platform for the development of futures traded and other traded products, in the financial market.”
MSCI said that the index would be based on the broader MSCI Saudi Arabia index series, part of the MSCI Emerging Markets Index.
Tadawul said in a separate statement it would introduce exchange-traded derivatives in the first half of 2019, Reuters reported.
“The creation of the joint tradable index provides a strong foundation for the development of index futures and other exchange-traded products,” said Al-Hussan.
“As the Saudi market is fully integrated into global emerging market indices, including MSCI, the launch of an index will pave the way for ETFs and other products that enable investors to broaden exposure and diversify ... risk while enhancing the overall efficiency of the market.
“The creation of the joint tradable index will be a milestone for launch of financial products, while Tadawul aspires to achieve more.”
He also pointed to the development of the Saudi exchange ahead of an expected initial public offering in energy giant Saudi Aramco, which is set to be the world’s largest listing.
“I think the Saudi stock exchange will continue to develop its markets to be ready for Aramco and other issues,” Al-Hussan added.
Henry A. Fernandez, MSCI’s chairman and chief executive officer, said that Saudi Arabia had gone through a “remarkably rapid period of change” in the past few years.
The Tadawul and MSCI will be working closely in a “win-win” situation, he added.
“This joint index is possible as a result of the Kingdom’s adoption of international standards and desire to create additional investment opportunities for domestic and international investors,” said Fernandez.
“The jointly launched index is a result of the Saudi market applying international standards and desire to provide additional investment opportunities to investors.”
Fernandez added that the composition of new MSCI-Saudi tradable index is not yet fixed, but said that “the index provider will publish standards later.”
The news follows a string of reforms on the Saudi market, including the easing on restrictions on foreign ownership of companies.
Saudi exchange boss sees more IPOs
Saudi exchange boss sees more IPOs
- Authorities are working on several initiatives including a package of incentives for local companies to list
- Launch of stock index futures should bring an influx of money from overseas
Gulf-EU value chain integration signals shift toward long-term economic partnership: GCC secretary general
RIYADH: Value chains between the Gulf and Europe are poised to become deeper and more resilient as economic ties shift beyond traditional trade toward long-term industrial and investment integration, according to the secretary general of the Gulf Cooperation Council.
Speaking on the sidelines of the World Governments Summit 2026 in Dubai, Jasem Al-Budaiwi said Gulf-European economic relations are shifting from simple commodity trade toward the joint development of sustainable value chains, reflecting a more strategic and lasting partnership.
His remarks were made during a dialogue session titled “The next investment and trade race,” held with Luigi Di Maio, the EU’s special representative for external affairs.
Al-Budaiwi said relations between the GCC and the EU are among the bloc’s most established partnerships, built on decades of institutional collaboration that began with the signing of the 1988 cooperation agreement.
He noted that the deal laid a solid foundation for political and economic dialogue and opened broad avenues for collaboration in trade, investment, and energy, as well as development and education.
The secretary general added that the partnership has undergone a qualitative shift in recent years, particularly following the adoption of the joint action program for the 2022–2027 period and the convening of the Gulf–European summit in Brussels.
Subsequent ministerial meetings, he said, have focused on implementing agreed outcomes, enhancing trade and investment cooperation, improving market access, and supporting supply chains and sustainable development.
According to Al-Budaiwi, merchandise trade between the two sides has reached around $197 billion, positioning the EU as one of the GCC’s most important trading partners.
He also pointed to the continued growth of European foreign direct investment into Gulf countries, which he said reflects the depth of economic interdependence and rising confidence in the Gulf business environment.
Looking ahead, Al-Budaiwi emphasized that the economic transformation across GCC states, driven by ambitious national visions, is creating broad opportunities for expanded cooperation with Europe.
He highlighted clean energy, green hydrogen, and digital transformation, as well as artificial intelligence, smart infrastructure, and cybersecurity, as priority areas for future partnership.
He added that the success of Gulf-European cooperation should not be measured solely by trade volumes or investment flows, but by its ability to evolve into an integrated model based on trust, risk-sharing, and the joint creation of economic value, contributing to stability and growth in the global economy.
GCC–EU plans to build shared value chains look well-timed as trade policy volatility rises.
In recent weeks, Washington’s renewed push over Greenland has been tied to tariff threats against European countries, prompting the EU to keep a €93 billion ($109.7 billion) retaliation package on standby.
At the same time, tighter US sanctions on Iran are increasing compliance risks for energy and shipping-related finance. Meanwhile, the World Trade Organization and UNCTAD warn that higher tariffs and ongoing uncertainty could weaken trade and investment across both regions in 2026.
