Saudi Arabia’s Tadawul to become a Holding Company with IPO at sight

By Rahul Vaimal, Associate Editor
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Tadawul Saudi Arabia's Stock Exchange
Representational Image

Saudi Arabia’s stock exchange, Tadawul will soon transition from being a joint-stock company into a holding company as it prepares for an IPO in 2021. 

The new holding entity, the Saudi Tadawul Group will have four subsidiaries;

  1. The Saudi Exchange, the dedicated stock exchange business which is currently known as Tadawul.
  2. The Securities Clearing Center Company, Muqassa.
  3. The Securities Depository Center Company, Edaa and
  4. The newly formed applied technology solutions company, Wamid which will provide innovation and nascent technologies within the Saudi economy through pragmatic innovation.

Wamid 

The newly formed entity, Wamid is expected to support the Saudi Tadawul Group and its subsidiaries by offering innovative solutions and capture expansion opportunities through targeted investments in an array of sectors and industries.

The Group is expected to benefit from the integration and synergies between its subsidiaries, ensuring efficient intra-group operations across the organization. Operational independence provided to each subsidiary will also facilitate creating an agile environment supporting rapid responses to evolving global and local market trends.

Tadawul’s current Chairperson of Board of Directors, Ms. Sarah Al-Suhaimi will become the Saudi Tadawul Group’s Chairperson with Eng. Khalid Al-Hussan becoming the Group’s Chief Executive Officer.

Mr. Mohammed Al-Rumaih, a financial sector veteran with more than 17 years of experience has been chosen to lead the Saudi Exchange as its Chief Executive Officer. Mr. Mohammed Al-Nory will be the Chief Executive Officer of Wamid, where he will use his 16 years of experience and knowledge in commercial and investment banking, corporate finance, business development and Capital Markets’ products to successfully leading the new entity.

Tadawul's chairwoman
Sarah Al-Suhaimi
Chairperson
Saudi Tadawul Group

“The transformation into the new structure under Saudi Tadawul Group, will support the continued growth of the Saudi capital market and reinforce its position as a global market leader and advanced capital market.”

“This is a significant achievement in our journey to transform Saudi Arabia’s economy. Comprehensive capital market reforms are not only prudent, but essential to ensuring higher economic growth, and achieving the nation-wide goal of the successful delivery of Saudi’s Vision 2030 and aligned with the strategy of the Public Investment Fund (PIF).”

Sharing his view on the restructuring, Eng. Khalid Al-Hussan, CEO of Saudi Tadawul Group commented that “The new structure will enable us to deliver high-quality services across all our business lines, increase our competitiveness, and align our capital market with the rapid growth of Emerging Markets. I’m confident that the Saudi Tadawul Group and its subsidiary companies will shape what comes next in terms of capital market development in Saudi Arabia, serving as the bridge connecting global investors and regional economies. The transformation provides a strong platform for the Saudi Tadawul Group’s IPO.”

“The transformation into a group is part of a continuous development program. The development program is focused on enhancing the capital market, attracting foreign investments and diversifying the economy, while supporting issuers and investors to achieve their ambitions, and providing them with access to attractive investment opportunities, in what is considered the region’s next financial capital,” Mr. Al-Hussan remarked.

Related: EXIM Bank will support the growth of Saudi exports; Minister


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