Saudi Arabia Increases Stock Market Liquidity
2022.12.04 12:31
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Saudi Arabia Increases Stock Market Liquidity
Budrigannews.com – On Sunday, Saudi Arabia announced that it had launched a market-making system on its stock market to improve the efficiency of price determination and provide liquidity. In order to become market makers, legal entities should be a member of the exchange or a client.
The Saudi Arabian Trading Exchange, also known as Tadawul, said: “Market makers should provide liquidity for quoted securities by ensuring continuous quotation throughout the open market.” “When the marketer’s commitment is fulfilled, the Saudi market will provide an incentive to the marketer.”
The Saudi Arabian Trading Exchange will take measures to comply with the requirements of marketers. “In November of this year, Dubai, with which the economic competition in Riyadh is growing, announced the creation of a “market makers” fund for 2 billion dirhams, intending to increase trading volumes on stock markets to 3 trillion. dirhams.”
“Unlike the USA, Europe and the USA, where world banks are reducing the number of staff by concluding deals, the state IPO programs of Saudi Arabia, Abu Dam and Dubai have helped equity markets in the rich oil refining Gulf of the Persian Gulf.”” This year Bay Guarantor has attracted about 16 billion dollars for such placements, which accounted for about 1% of the total number of initial public offerings of shares in Europe, the Middle East and Africa, according to Refinitive.
Saudi oil magnate Aramco, if its prices are lower than what was known on Sunday, a subsidiary of the basic oil market Lubereff expects that up to 4.95 billion rials 1,32 billion dollars will be raised from the IPO.
The heir to the kingdom, Mohammed Bin Salman, in July announced the kingdom’s intention to enter the three largest stock exchanges in the world.
It was part of a larger strategy to diversify the oil economy. “According to “Statistician”, “Tadawul” is the ninth exchange in the world by capitalization of listed companies in the amount of 2.86 trillion. dollars in October, slightly ahead of the London Stock Exchange.”
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