International Bond Investors to Access $2.5 Trillion Saudi Market Via New Channel

SourceAl Bawaba
SectorFinancial Markets
CountrySaudi Arabia

International bond and exchange traded fund investors will be able to access the $2.5 trillion Saudi market without having to apply for special status.

Clearstream, the post-trading services provider of Deutsche Börse Group, will connect the Saudi capital market to its network after teaming up with the Securities Depository Center Company (Edaa), a unit of the Saudi Tadawul Group.

Clearstream is the first International Central Securities Depository (ICSD) to offer international investors access to the Saudi capital market — home to some of the region’s biggest bond sales.

Eligible clients will be allowed to access and trade on the Saudi Exchange commencing June 14, it said in a statement on Monday.

It will give international investors access to the Saudi capital market by enabling settlement of listed government bonds, non-convertible corporate bonds and ETFs denominated in Saudi riyals.

Eligible customers will not have to apply for Qualified Foreign Investor (QFI) status which could boost demand for Saudi government bonds from cross-border investors and help more...