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

RIYADH (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.




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