ABOUT TADAWUL
SHAPING THE CONTOURS OF
A NEW ERA
Tadawul has taken a step to the next level in its evolution, and is well placed to realize its goal of becoming a global stock exchange.
Where we stand
Tadawul now ranks among the top 10 largest exchanges globally in terms of market capitalization. (USD Tn)
Tadawul accounts for 76% of the market capitalization in the Middle East and North Africa (MENA) region.
Tadawul accounts for the highest percentage of market capitalization/GDP ratio amongst leading emerging markets.
Our history
From humble beginnings over six decades ago, we have grown to be a regional exchange for the Middle East.
Who we are
Tadawul was formed on 19 March 2007, as a joint stock company and is authorized to act as a securities exchange in the Kingdom of Saudi Arabia.
The Exchange is regulated by the Capital Market Authority but has become a partially self-regulating organization since 2018. It is supported in its operations by two wholly-owned subsidiary companies. The Securities Clearing Center Company (Muqassa), was established in 2018, to play an intermediary role in the trading process and reduce counterparty risk. The Securities Depository Center Company (Edaa), established in 2016, operates and maintains the Depository and Settlement System which is used to record and maintain securities as well as to register the ownership of securities.
Tadawul is an affiliate member of the International Organization of Securities Commissions (IOSCO), the World Federation of Exchanges (WFE), the Arab Federation of Exchanges (AFE), and is also a member of the United Nations Sustainable Stock Exchanges (UNSSE). The share capital of Tadawul is SAR 1.2 Bn divided into 120 Mn shares of equal value of SAR 10. All shares have been subscribed to by the Public Investment Fund.
Ownership structure
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.
CORE VALUES
What we do
Tadawul provides a platform for the listing and trading of a variety of securities such as equities, Real Estate Investment Traded Funds (REITs), Exchange Traded Funds (ETFs), Corporate bonds, Government bonds, and Sukuks.
Tadawul’s objectives and strategies are closely aligned with those of the Kingdom’s Vision 2030. The goals which both share include increasing the private sector’s contribution to the economy, drawing in more foreign investment, and growing the SME sector.
A securities exchange provides the infrastructure where corporates can raise equity or loan finance. It also provides a secondary market where securities can be traded. Today, record of the ownership of securities and the trading process has moved almost totally to the electronic medium. Prices of securities are usually fixed through an auction process where offers to buy and sell are matched.
A core function of the exchange is the depository, which maintains records of ownership of shares (by way of an account for each investor); it also records and confirms transfers of ownership. A registry is the record of the complete details of the ownership of the securities of an individual corporate.
The clearing is a procedure for calculating the obligations arising from the concluded transactions in securities and the preparation procedure for the settlement of such transactions by checking the availability of the required securities and cash. The conclusion of the transaction happens at the settlement stage where funds and securities are transferred to the respective parties.