The amendments to Saudi Arabia’s capital market law will allow the Kingdom to establish other exchanges, Capital Market Authority (CMA) chairman Mohammed ElKuwaiz said on Wednesday.
“CMA plans to license other entities to provide activities of exchanges, depositories or clearing houses,” ElKuwaiz said, as quoted by Reuters.
Saudi Arabia currently has one main stock exchange, Tadawul, which opened to foreign investors in 2015. In 2017, the Kingdom added Nomu, a secondary parallel market.
Local shares were recently incorporated into the MSCI and FTSE Russell emerging market indexes, resulting in billions of dollars of additional foreign inflows to the Kingdom.