Saudi Stock Exchange (Tadawul)

About Tadawul

Development Stages

Saudi joint stock companies had their beginnings in the mid 1930’s, when the “Arab Automobile” company was established as the first joint stock company. By 1975 there were about 14 public companies. The rapid economic expansion, besides the Saudisation of part of the foreign banks capital in the 1970’s led to the establishment of a number of large corporations and joint stock banks.

The market remained informal, until the early 1980’s when the government embarked on forming a regulated market for trading together with the required systems. In 1984, a Ministerial Committee composed of the Ministry of Finance and National Economy, Ministry of Commerce and Saudi Arabian Monetary Agency (SAMA) was formed to regulate and develop the market. SAMA was the government body charged with regulating and monitoring market activities until the Capital Market Authority (CMA) was established in July 2003 under the Capital Market Law (CML) by Royal Decree No. (M/30). The CMA is the sole regulator and supervisor of the capital market, it issues the required rules and regulations to protect investors and ensure fairness and efficiency in the market.

Formation of Saudi Stock Exchange (Tadawul)

The Council of Ministers approved on the 19th of March 2007, the formation of The Saudi Stock Exchange (Tadawul) Company. This was in accordance with Article-20 of the Capital Market Law establishing Tadawul as a joint stock company.

Vision and Mission

Vision

To be an integrated financial exchange that fosters the development of a diverse Saudi capital market and competes internationally.

Mission

To offer sound, efficient and attractive capital market products and services that deliver superior value to our market participants and stakeholders.

Objectives

Operating the market efficiently and delivering service excellence:

• Operate the market effectively and efficiently

• Ensure market integrity, quality, and fairness

• Support investor education and awareness efforts

• Develop service excellence for customers (brokers, issuers, investors, vendors, etc)

• Develop the exchange’s capabilities and competencies.

Developing a leading financial exchange by supporting competitive investment and financing channels:

• Support efficient capital raising for companies

• Provide innovative, diversified, and integrated financial markets, products, services,
and instruments

• Attract national and international market participants

• Integrate and leverage offerings across our value chain

• Provide superior financial returns and shareholder value

Board of Directors

Board of Directors

The board of the Saudi Stock Exchange (Tadawul) consists of 9 members that are appointed by a decree of the Council of Ministers, based on a recommendation by the Chairman of Capital Market Authority (CMA). The board includes a representative of the Ministry of Finance, a representative of the Ministry of Commerce and Industry, a representative the Saudi Arabian Monetary Agency, four representatives of the licensed brokerage firms, and two representatives of the listed companies.

The board members are:

Khalid I. Alrabiah, Chairman

Abdulrahman M. Al Mofadhi, Vice Chairman

Abdulaziz Saleh Al-Furaih

Dr. Fahad A. Abuhimed

Abdulrahman Y. Al Yahya

Rayan Mohammed Fayez

Ali A. Al Gwaiz

Dr. Sami M. Baroum

Tariq Z. A. Al-Sudairy

Formation of Saudi Stock Exchange (Tadawul)

The capital of the company is 1.2 billion Saudi Riyals, divided into 120 million shares, wholly owned by the Public Investment Fund (PIF). The company Articles of Association also allow for part of the company’s shares to be floated for public at a time to be determined by an extraordinary meeting of its general assembly.

Our Technology

New Tadawul Systems in Saudi Arabia

The first electronic share trading system in Saudi Arabia (ESIS) was introduced in 1990. ESIS was replaced in 2001 by a more advanced system which introduced new order types and was able to handle larger volumes. T+0 settlement was also introduced for the first time in the Middle East. Since then, the exchange systems went through a series of expansions and enhancements to support the phenomenal increase in volumes traded which peaked at over 800,000 trades per day by 2005.

In 2006, the Saudi Stock Exchange signed a contract with OMX (a leading supplier and operator for stock exchange technologies) for the design, supply and implementation of trading, information dissemination, surveillance and depository and settlement systems. The new infrastructure enabled the Exchange’s plans for expanding its business and product offerings.

In 2014, the Saudi Stock Exchange and NASDAQ embarked on a sophisticated, large scale project to replace the SAXESS trading platform with NASDAQ’s latest trading platform, X-stream INET Trading, which was launched in September of 2015. The new platform is the latest in trading solutions and is the fastest recorded trading engine in the world. The new platform will handle the trading of Equities, Sukuk and Bonds, and ETFs. Its robustness, speed, and flexibility will allow us to drive exchange innovation to introduce a variety of new markets, asset classes, and participants whilst enhancing functionality, availability and reliability.

---

[wpResize]

---