Saudi Arabia’s Tadawul to begin derivatives trading from next month – The National

Saudi Arabia’s Tadawul to begin derivatives trading from next month – The National

The biggest Arab bourse will launch an exchange-traded index futures contract on August 30 and will roll out more products, CEO says

















Tadawul, the biggest Arab bourse, says it will launch trading in derivatives on August 30. Reuters







Saudi Arabia's Tadawul stock exchange will allow trading in derivatives next month, as the Arab world's biggest bourse looks to broaden its product offerings to increase liquidity and attract more foreign direct investment.



The first exchange-traded product will be the Saudi Futures 30 index futures contract, which is based on the MSCI Tadawul 30 index. Trading in the contract will begin from August 30, Khalid Al Hussan, chief executive of Tadawul, told a virtual press conference on Tuesday. The new product has drawn the attention of institutional investors and will prove attractive to international funds, he said.



"Today, we believe we have announced a key milestone in the development of the Saudi market,“ Mr Al Hussan said. "We have confirmed our commitment to develop [the] market.“



Saudi Arabia's capital market has witnessed "rapid changes“ to increase its depth, including the introduction of an independent clearing house, known as Muqassa, paving the way